Goldman Sachs lowered its Brent price outlook, saying OPEC+ output cuts and interest rate reductions by central banks would not be enough to stem a large inventory build up caused by declining demand from the coronavirus outbreak.
Brent prices could fall to $45 per barrel in April, from an earlier estimate of $53, before gradually recovering to $60 by year-end, the Wall Street bank said in a note on Tuesday. In its second downward revision in less than a month, the bank lowered its third- and fourth-quarter Brent price forecasts to $53 and $59 a barrel respectively, from $60 and $65 previously.
Oil prices rose on Wednesday after a panel of the Organisation of Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, recommended cutting oil output by an extra 1 million barrels per day (bpd) on Tuesday.
