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.”
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