Goldman Sachs Cuts Oil Forecast Amid Market Fluctuations

Oil prices fluctuated amid geopolitical and economic developments, with Brent crude rebounding to $65 per barrel and WTI to $62 due to hopes for renewed US-China trade talks, despite bearish forecasts. The International Energy Agency (IEA) cut its global demand forecast for 2024, indicating a potential supply glut until 2026, exacerbated by OPEC+'s unexpected output increase and potential Iranian crude exports. President Trump's consideration of tariff exemptions spurred temporary support for oil prices, but uncertainties around the trade war and recession fears persist. Goldman Sachs has cut its oil price forecasts, citing expected supply surpluses and subdued demand growth, with Brent and WTI projected to average lower than previous estimates through 2026. Meanwhile, US crude inventories unexpectedly increased, although declines at Cushing and in fuel stockpiles helped offset the impact. Overall, the oil market faces pressure from overproduction, geopolitical tensions, and economic slowdowns.