Goldman Sachs Slashes Brent Outlook to Below $90 by Year-End

  • Brent will average $86 a barrel in December instead of $95
  • Bank lowers demand forecasts and raises Russia output estimate

upply increases from nations facing sanctions — Russia, Iran and Venezuela — are a key driver in the lower price outlook.

Photographer: Andrey Rudakov/Bloomberg
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Goldman Sachs Group Inc., one of the most bullish banks on the outlook for oil, has once again lowered its price forecasts amid increasing global supplies and waning demand.

The bank has dropped its Brent forecast for December to $86 a barrel, down from its previous estimateBloomberg Terminal of $95 a barrel, according to a note to clients on Sunday. This is Goldman’s thirdBloomberg Terminal downward revision in the last six months after having previously stood by its bullish $100-a-barrel prediction. Brent’s August contract settled at $74.79 a barrel on Friday.