U.S. investment bank Goldman Sachs (GS) has lowered its oil price forecast by $10 U.S. to $100 U.S. per barrel for the current fourth quarter.
The bank cited rising COVID-19 outbreaks in China and a lack of clarity regarding plans to cap Russian oil prices as the reasons for its downgrade to oil prices.
China reported three COVID-19 deaths over the weekend, the country’s first deaths from the respiratory disease since May of this year. China has tightened its COVID-19 measures in recent weeks.
Goldman Sachs said in a note to clients that the possibility of more lockdowns in China, which is the world’s top importer of oil, will hurt global demand in the coming weeks.
Also influencing Goldman’s downgrade are higher-than-expected exports of oil from Russia two weeks before a European Union embargo is set to take effect.
Crude oil prices have fluctuated sharply over the past six months, rising to more than $120 U.S. in June before falling below $90 U.S. per barrel after OPEC+ slashed production.
Brent crude oil, the international benchmark, is down 0.9% and currently trading at $86.83 U.S. per barrel. West Texas Intermediate (WTI) crude oil, the American standard, is down 1.09% and trading at $79.21 U.S. per barrel.
Goldman Sachs’ stock is down 4% this year and trading at $379.20 U.S. per share.
