Goldman Sach reduced range of Brent oil prices by $5 to $70-$85 per barrel last week in a context a rising domestic supply and stable inventories.
Markets also seem to pricing in a potential market slowdown on the back of slowing jobs numbers in the US and weakening Chinese demand.
Analysts also speculated that OPEC might try to increase supply in order to discourage US shale production.
“Prices could significantly undershoot in the short term, especially if OPEC were to strategically discourage US shale growth more forcefully, or if a recession were to reduce oil demand,” noted Goldman Sachs analysts.
The cooling of oil prices stands in stark contrast to the continuing geopolitical tensions in the Middle East.
By Staff
