Oil Tumbles to Three-Month Low After Goldman Cuts Forecast Again

  • Demand concerns dominate sentiment even amid deeper Saudi cuts
  • WTI drops to near $67, extending last week’s declines

An oil drilling rig in Midland, Texas.

Photographer: Sergio Flores/Bloomberg
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Oil closed at a three-month low, extending last week’s losses after Goldman Sachs Group Inc. cut its forecast for the third time in six months.

West Texas Intermediate dropped 4.3%, more than erasing a rally stoked by Saudi Arabia’s decision less than two weeks ago to cut 1 million barrels a day of production. Even with Saudi Arabia’s cutback, Goldman sees crude supplies swelling, and the bank trimmed its year-end price estimate to $86.