Brent Oil Could Drop To $45 In April

In the second downward revision of its oil price outlook in just one month, Goldman Sachs slashed again its estimates for 2020, noting that even deeper OPEC+ cuts and central banks’ interventions may not be able to erase the glut amid depressed oil demand and Brent crude could fall to as low as $45 a barrel next month.

According to a Goldman note from Tuesday, OPEC+ cuts may help inventories balance later in 2020, but they will not be able to prevent an already sizeable inventory accumulation around the world, because of the slump in demand in the coronavirus outbreak.

“It will take sustained curtailed OPEC+ production – rather than global synchronized rate cuts – to help prices gradually recover from April onwards,” Goldman Sachs analysts said in the note, as carried by Reuters.

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