Goldman Sachs lowers its Brent price forecast for next year to $77 per barrel

 

Goldman Sachs lowered its expectations for the average price of Brent crude price forecast in 2025 and the range of its price movements by five dollars per barrel, suggesting that the market will be affected by unexpected increases in oil inventories in addition to... Cooling Chinese demand.
The bank said in a note yesterday that it reduced the range of price movements for Brent crude to be between $70 and $85 per barrel, and expected its average price to be $77 per barrel in 2025, down from $82.

Goldman Sachs said that US supplies exceed expectations, while demand growth slowed in China, but added that what curbs the price decline is demand in India and low interest rates, among other factors, “Reuters.”
In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) reduced expectations for growth in global oil demand next year to 1.78 million barrels per day from 1.85 million barrels per day in previous expectations.
According to Goldman, "We still assume that OPEC will raise production in the fourth quarter."
The OPEC+ group, which includes OPEC and allies including Russia, has been adopting a series of production cuts since late 2022 to support the market, most of which are in effect until the end of 2025.
On August 1, OPEC+ confirmed a plan to begin abandoning the latest tranche of cuts, amounting to 2.2 million barrels per day, starting in October, noting that it is possible to stop it temporarily or reverse its course if necessary.
The rise in oil prices stopped recently, and they declined on Tuesday after rising by more than 7% in the previous three sessions against the backdrop of concerns about supplies due to concerns about the expansion of the conflict in the Middle East and the closure of Libyan oil fields.