Goldman Sachs cuts Brent forecasts to $30 on price war, virus impact
Goldman Sachs cut its second- and third-quarter Brent price forecasts to $30 per barrel, citing the oilNSE -9.17 % price war between Russia and Saudi Arabia and a significant collapse in oil demand due to the coronavirus that has killed more than 3,500 globally.
Oil fell by the most since 1991 on Monday after Saudi Arabia started a price war with Russia by slashing its selling prices and pledging to unleash its pent-up supply onto a market reeling from falling demand because of the virus outbreak.
“The aggressive cut to Saudi’s Official Selling Prices and Russia’s reluctance to be pushed into a deal on Friday point to a low probability of an immediate (OPEC+) agreement,” Goldman said in a note dated March 8.
