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(Reuters) - Goldman Sachs lowered its crude price forecast for this year and 2024, citing a recent slump in oil prices due to banking stress, recession fears, and an exodus of investor flows.
“The first leg down in oil prices followed Powell’s hint at a potential return to 50 points hikes on March 7th, which revived recession worries,” the bank said in a note.
“The second sharper leg down in oil prices coincided with signs of stress in the banking system and a sharp decline in bank equities and interest rates,” the bank added.
Oil prices rebounded and rose over 1% on Monday after diving to their lowest levels in 15 months as the market worried that risks in the global banking sector could spark a recession that would sap fuel demand. [O/R]
The following is a list of the latest brokerage forecasts for 2022 average prices per barrel for Brent and WTI (in $ per barrel):
Brokerage/Agency Brent WTI Date
Revised
Goldman Sachs March 18
BofA Global Research 88.00 90.00 Feb. 26
Goldman Sachs 92.00 100.00 86.00 94.00 Feb. 9
Citi Research 80.00 75.00 NA
Goldman Sachs 98.00 92.00 Dec. 13
Barclays 98.00 93.00 Oct. 21
*Commerzbank 100.00 -- Oct. 11
Fitch Solutions 100.00 98.00 Oct. 6
*UBS -- -- Oct. 5
Morgan Stanley (base case) 105.00 102.5 Oct. 5
Standard Chartered 91.00 88.00 NA
BofA Global Research 95.00 90.00 NA
JPMorgan 98.00 94 March 15
ABN Amro 76.00 74.00 NA
* indicates end-of-period forecast
# current as of given date, may not indicate date of revision
For a table of crude price forecasts as of Jan. 31, see
Reporting by Bengaluru Commodities desk; Editing by David Gregorio
