Goldman Lowers Oil Price Q4 Forecast to $43

U.S. investment bank Goldman Sachs has lowered its forecast for the price of oil price, saying its supply-demand balance for the fourth quarter of 2016 is weaker than previously expected.

“We are lowering our (fourth quarter) forecast to $43 (per barrel) from $50 (per barrel) previously,” a commodity research team at the bank, led by Damien Courvalin, said in a note published Tuesday.

“Given upside surprises to (third-quarter) production and greater clarity on new project delivery into year-end. This leaves us expecting a global surplus of 400,000 (barrels per day) in (the fourth quarter) versus a 300,000 (barrels per day) draw previously.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza