Brent fell for a second day as Goldman Sachs Group Inc. joined other banks in lowering price forecasts. West Texas Intermediate was little changed.
Brent will average $85 a barrel in the first quarter, down from a previous projection of $100, Goldman analysts including Jeffrey Currie in New York said in a report yesterday. Banks including Barclays Plc, Bank of America Corp. and Citigroup Inc. have already reduced their estimates after both grades collapsed into a bear market amid rising global supplies.
“The near-term supply-demand situation is bearish,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $2.4 billion. “Prices will not recover until the last bear dies.”