Goldman Sachs predicts Brent crude will slide to $85 per barrel by year-end, a move expected to cool inflation and allow the Federal Reserve to conclude its interest rate hike cycle after an October increase.
Goldman Sachs predicts Brent crude will drop to $85 per barrel by December, and the recent sell-off has already pushed prices below $100, indicating a bearish outlook for oil.
Goldman Sachs anticipates one final interest rate hike in October before the Federal Reserve pauses its current tightening cycle. The firm's outlook hinges on a sustained decline in oil prices, with Brent crude projected to hit $85 per barrel by December as geopolitical supply fears subside.
The firm cites the easing of geopolitical risk premiums, specifically the partial restart of Saudi Arabia's East-West Pipeline and diplomatic progress between the US and Iran, as primary drivers for the decline.