MW: Goldman cuts oil forecast to $70 a barrel by year-end
By Polya Lesova
NEW YORK (MarketWatch) -- Analysts at Goldman Sachs slashed their year-end forecast for oil prices to $70 a barrel from $115 a barrel previously, saying that "we clearly underestimated the depth and duration of the global financial crisis and its implications on economic growth and commodity demand." Jeffrey Currie and other Goldman analysts wrote in a research report dated Oct. 13 that "the timing of the trough, however, remains highly uncertain as credit issues have created significant distortions in demand and production, inventory management and pricing across the supply chain." The point of maximum weakness for oil demand is likely occurring right now while the credit markets are locked, the Goldman analysts said. On Globex Monday, November crude traded at $82 a barrel in electronic trade.
