Goldman Sachs cut its forecast for Brent crude futures at the weekend, after prices fell 15% since early March due to banking concerns and recession fears.
The investment bank said in a note dated March 18 that it now expects the average Brent price to reach $94 a barrel in the next twelve months and $97 in the second half of 2024, down from $100 previously.
Analysts at the bank said: “Oil prices fell despite a surge in demand from China due to pressure on banks and recession fears and outflows of investors.”
The bank also cut its demand forecasts for Europe and North America in 2023, while raising its outlook for China.
This led to a 600,000 bpd cut in the 2024 estimate, while keeping the 2023 demand forecast unchanged.
