Goldman Takes Butcher Knife to Oil Forecasts

posted in: crude oil, Energy, Goldman Sachs | 25,580

Goldman Sachs has finally capitulated on its oil price forecasts and the firm has done it in a big way:

Goldman_Crude

GS slashed its 3-month WTI forecast by $29/barrel and its 3-month Brent forecast by $38/barrel. Here is the firms rationale for the cuts in brief:

“To keep all capital sidelined and curtail investment in shale until the market has re-balanced, we believe prices need to stay lower for longer…” 

Meanwhile, WTI crude oil futures have made fresh lows this morning below $47/barrel:

WTI_30-minute

The search for a bottom in crude continues and Goldman’s $41 forecast may ultimately turn out to be a self fulfilling prophecy…


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