Goldman Losing Faith in $100 Brent as WTI Spread Seen Wider - Bloomberg

Goldman Losing Faith in $100 Brent as WTI Spread Seen Wider - Bloomberg:



"Goldman Sachs Group Inc. says it’s losing confidence in its forecast that Brent crude will recover to $100 a barrel next year.



While the Wall Street bank is maintaining its projection for now, it says that a lack of signs of accelerating global economic growth and uncertainty over OPEC’s production plans amid rising Libyan output are weakening its conviction. Brent, the benchmark for more than half the world’s oil, closed at $93.42 a barrel yesterday, the lowest in more than two years.



Prices slumped as U.S. crude production climbed last month to the highest level since 1986 and the Organization of Petroleum Exporting Countries pumped the most oil in a year. The International Energy Agency cut its projections for global consumption growth through next year due to a weakening economic outlook while Saudi Arabia lowered prices this week, signaling the world’s biggest exporter is prepared to let them fall rather than cede market share."



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