Goldman Sachs Cuts Brent Crude Forecast to $85; Morgan Stanley Lowers Oil Outlook on Gulf Supply
GS sits 77% above its 52-week low of $609.59.
Summary
Goldman Sachs and Morgan Stanley have revised down their oil price forecasts due to an expected faster recovery of Persian Gulf supply. Goldman Sachs now projects Brent crude to average $85 a barrel this year, down from $90. Morgan Stanley cut its Q4 Dated Brent forecast to $90 from $100, and $80 for next year. This follows an interim deal between the U.S. and Iran, which is anticipated to reopen the Strait of Hormuz and restore oil flows sooner than previously expected. These updated forecasts from major Wall Street banks are influential for energy market participants and can impact investment decisions across the sector. The deal is set to be officially signed on Friday, with the Strait of Hormuz expected to reopen this week.
At the time of this announcement, GS was trading at $1,082.00 on NYSE in the Finance sector, with a market capitalization of approximately $317.5B. The 52-week trading range was $609.59 to $1,098.36. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.