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

Dropped its Brent forecast for December to $86 a barrel

• down from its prior projection of $95 (and $100 before that)

GS citing:

• Supply increases from Russia, Iran and Venezuela (all are facing sanctions)
• Supply output from Russia has “nearly fully recovered”
• Gaining recession fears
• persistent headwinds to higher prices from higher interest rates

As background to the revision lower, Jeff Currie, Goldman’s head of commodities
Commodities

Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit

Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit
Read this Term research, said in a Bloomberg Television interview last week