More on Goldman Sachs slashing its December Brent oil forecast to $86 from $95

I posted earlier on this weekend's crude oil Crude Oil Crude oil is the most popular tradable instrument in the energy sector, offering exposure to global market conditions, geopolitical risk, and economics. The instrument is strategically relied upon and situated in the global economy. Crude oil has proven to be a unique option for traders given volatility and the efficacy of both swing trading and longer-term strategies. Despite its popularity, crude oil is a very complex investing instrument, given the litany of fluctuations in oil prices, risk, Crude oil is the most popular tradable instrument in the energy sector, offering exposure to global market conditions, geopolitical risk, and economics. The instrument is strategically relied upon and situated in the global economy. Crude oil has proven to be a unique option for traders given volatility and the efficacy of both swing trading and longer-term strategies. Despite its popularity, crude oil is a very complex investing instrument, given the litany of fluctuations in oil prices, risk, Read this Term forecast revision from Goldman Sachs Goldman Sachs Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It was founded in 1869 and is one of the largest and most well-known investment banks in the world.Goldman Sachs has a mixed reputation. On one hand, it is known for its expertise in investment banking and its role in many high-profile financial deals. On the other hand, it has faced criticism and controversy over the years, including accusations of unethical business practices and con Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It was founded in 1869 and is one of the largest and most well-known investment banks in the world.Goldman Sachs has a mixed reputation. On one hand, it is known for its expertise in investment banking and its role in many high-profile financial deals. On the other hand, it has faced criticism and controversy over the years, including accusations of unethical business practices and con Read this Term here:

• Goldman Sachs slashed its December Brent forecast to $86 /bbl (from previous estimate $95)

As further background to this change of call, Goldman Sachs Group Inc.’s Global Head of Commodities Research Jeffrey Currie spoke in a Bloomberg TV interview on Friday, making points that

• high interest rates, which have pushed up carry costs by circa 13 to 15%, are bringing on destocking. Higher interest rates have made it too expensive to keep oil in storage and investor interest is unlikely to return until inventories start to decline.
• and “You’re going to be seeing substantial physical inventory draws because of these OPEC production cuts, particularly in the third and fourth quarter,” he said. “That’s going to push us up into the low $90s.”