Goldman Sachs slashes Brent crude forecast

Goldman Sachs lowered its fourth-quarter forecast for Brent crude by $10 a barrel to $100 each, citing rising concerns about China’s COVID-19 outbreak and the uncertainty around the G7 plan for a price cap on Russian oil, CNBC reported.

The US bank's economists, said in its note issued today, Nov. 21, said the market is “right to be anxious” about future fundamentals, as China — one of the world’s biggest oil importers — tightened anti-COVID curbs. It is also weighed by ambiguity over the G7 nations’ stance on setting a ceiling on Russian oil prices.

They added that more closures in China represent a major reversal in production, similar to the large output cuts imposed last October by OPEC+, which amounted to two million barrels per day (bpd).