Goldman's new oil forecast

Goldman has cut its year-end Brent forecast to below $90 a barrel after two previous downward revisions in the past six months. Concerns about fuel demand deepened further last week after a string of weak data from China that deepened deflation at factory gates and dampened exports. Goldman Sachs has cut its oil price forecast again amid rising global supply and falling demand. In a note to clients on Sunday, the bank lowered its Brent forecast for December to $86 a barrel from its previous forecast of $95. That’s Goldman’s third downward revision in the past six months, following an upward forecast of $100 a barrel. Brent for the August contract settled at $74.79 a barrel on Friday. “We’ve never been this wrong for so long without seeing evidence that would change our views,” Jeff Currie, Goldman’s head of commodities research, said in an interview with Bloomberg Television last week. According to Goldman, increased supply from sanctions-hit countries like Russia, Iran and Venezuela is a major factor in the lower price outlook. Russian supply production, in particular, has “almost fully recovered” despite sanctions from Western countries.