(Reuters) – Goldman Sachs on Tuesday reduced its forecast for Brent crude oil to $75 a barrel for the third quarter, $5 lower than its previous estimate, as a surge in Delta variant COVID-19 cases takes a toll on demand.
Oil prices fell $5 a barrel on Monday in response to fears over the hit to demand from rising Delta coronavirus infections and an OPEC+ agreement to boost output.
“Our oil balances are slightly tighter in 2H21 than previously, with an assumed two-month 1 mb/d demand hit from Delta more than offset by OPEC+ slower production ramp-up,” Goldman said.
The bank now projects a third-quarter deficit of 1.5 million bpd versus 1.9 million bpd forecast previously.
