OctaFX | OctaFX Forex Broker
Open trading account

Goldman Sachs cuts 2019 oil price forecast

The investment bank Goldman Sachs has cut both the Brent and WTI oil price forecast by 2019, according to Bloomberg.

Brent is now seen averaging $62.50 per barrel in 2019 - down 10 percent from the previous price forecast of $70. Meanwhile, WTI price average for 2019 has been revised lower to $55.50 per barrel from $64.50.

Key points

Price levels and term structure remain undervalued relative to fundamentals.

The oil market will balance at a lower marginal cost in 2019, given higher inventory levels to start the year, the persistent beat in 2018 shale production growth amidst little-observed cost inflation, weaker than previously expected demand growth expectations (even at our above consensus forecasts) and increased low-cost production capacity.

Chinese media: PBOC set for another RRR cut soon

According to headline blips crossing the wires, China's state-run Economic Information Daily is suggesting the People's Bank of China (PBoC) still has
Read more Previous

USD/CNH Technical Analysis: Break below 100-day EMA would bolster the bearish setup

The USD/CNH pair could suffer deeper losses if the immediate support at 6.8857 is breached, technical charts indicate. Daily chart As seen above
Read more Next
Start livechat