Goldman Sachs cuts Brent outlook to below $90

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Goldman Sachs Group Inc. cut its forecast for Brent prices for the third time in six months, on the back of an uptick in global supplies and a pullback in demand.

In a note to clients, the bank slashed its Brent forecast for December to $86 a barrel, down from its previous estimate of $95 apiece.

The bank sees supply increases from nations facing sanctions — Russia, Iran and Venezuela — a key driver in the lower price outlook. Russia's supply production, in particular, has “nearly fully recovered” despite sanctions from Western countries.

Recession fears are also weighing on prices, with higher interest rates likely to be a “persistent headwind” to higher prices, Bloomberg reported, citing Goldman analysts.