Goldman Sachs had been persistently amongst the most bullish of analysts for oil prices. Its now issued its third downward revision of its Brent forecast in the last six months.

Dropped its Brent forecast for December to $86 a barrel

  • down from its prior projection of $95 (and $100 before that)

GS citing:

  • Supply increases from Russia, Iran and Venezuela (all are facing sanctions)
  • Supply output from Russia has “nearly fully recovered”
  • Gaining recession fears
  • persistent headwinds to higher prices from higher interest rates

As background to the revision lower, Jeff Currie, Goldman’s head of commodities research, said in a Bloomberg Television interview last week

  • “We have never been this wrong for this long without seeing evidence to change our views”
oil barrel

Oil markets open for the week's trading in a couple of hours.