Goldman Sachs lowers Brent crude price forecast for 2025 amid market shifts
Date
8/27/2024 7:39:53 AM
(MENAFN) Goldman Sachs has revised its 2025 brent crude price forecast downward, adjusting the anticipated price range by USD5 per barrel. The bank now expects Brent crude to average USD77 per barrel in 2025, down from a previous forecast of USD82. The new price range is set between USD70 and USD85 per barrel. This adjustment reflects unexpected increases in oil inventories and weaker demand from China, which are expected to exert downward pressure on the market.
In its note released on Monday, Goldman Sachs highlighted that US oil supplies have exceeded previous forecasts while Chinese demand growth has slowed. Despite this, factors such as rising demand in India and lower interest rates are somewhat mitigating the impact on prices. The Organization of the Petroleum Exporting Countries (OPEC) has also revised its global oil demand growth forecast for the coming year to 1.78 million barrels per day, down from an earlier estimate of 1.85 million barrels per day.
OPEC+, which encompasses both OPEC members and allies including Russia, has been implementing a series of production cuts since late 2022 to stabilize the market. These cuts are largely scheduled to remain in effect until the end of 2025. On August 1, OPEC+ announced plans to start unwinding the most recent reduction of 2.2 million barrels per day beginning in October, with the possibility of pausing or reversing this decision if market conditions warrant. Recently, oil prices have experienced volatility, falling after a significant rise driven by supply concerns related to the Middle East conflict and disruptions in Libyan oil production.
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