Goldman Cuts Oil Forecasts as U.S. Market Clout Increases
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Goldman Sachs Group Inc. cut its forecasts for Brent and WTI crude prices next year on rising global supplies, predicting OPEC will lose influence over the oil market amid the U.S. shale boom.
The bank is becoming more confident in the scale and sustainability of U.S. shale oil production and said U.S. benchmark prices need to decline to $75 a barrel for a slowdown in output growth. Brent will average $85 a barrel in the first quarter, down from a previous forecast of $100, and West Texas Intermediate will sell for $75 a barrel in the period from an earlier estimate of $90, analysts including Jeffrey Currie wrote in a report.