Goldman Sachs Cuts Oil Price Forecast
June 13, 2023
Goldman Sachs cut its oil price forecast on higher than expected supplies from Russia and Iran. It cut its December Brent crude price forecast to $86 per barrel, down from a previous forecast of $95 per barrel. It cut December WTI crude price to $81 per barrel from a previous forecast of $89 per barrel.
The US Federal Open Market Committee meeting this week is expected to pause on interest rate hikes for June but may signal more rate hikes later in the year due to continued higher inflation.
China continues to be the wild card for where energy prices could go. China’s economic recovery has not been as robust as many thought and that has put some softness into energy prices. Bloomberg reports that China is considering a broad economic stimulus package to try and stimulate its economy. Any success here that increases energy demand is supportive of prices.