Big Banks Turn Bearish On Oil Next Year | OilPrice.com

Big Banks Turn Bearish On Oil Next Year | OilPrice.com:

As the year draws to a close, the Brent and WTI oil benchmarks are trading at $66.55 and $61.54, respectively.

From $60.65 to $64.50, investment bank and analyst projections for Brent crude prices next year are starting to come in. Most forecasts had the luxury of OPEC’s deeper production cuts under the belt, but by and large, analysts are predicting only lackluster, short-term price gains from the cartel’s actions.

Goldman Sachs – $63/$60. Goldman has updated its 2020 oil price forecast to account for the new OPEC production cuts sealed a couple weeks ago. Its latest projection now sees the Brent benchmark averaging $63 per barrel next year, up from their previous $60 per barrel projection. For the US WTI benchmark, the investment bank sees it averaging $58.50 per barrel. Part of its rationale for the increase was its perceived shift in OPEC strategy—shifting away from trying to correct long-term supply and demand imbalances and toward short-term imbalances. As a result, the Goldman sees the gap between supply and demand next year tightening by 300,000 more barrels per day compared to what they had previously forecast.