Goldman Sachs lowered its oil forecast for the third quarter to $110, but believes that there are still bullish factors in the oil market

Goldman Sachs lowered its Brent crude price forecast for the quarter to $110 a barrel, down from a previous forecast of $140 a barrel, but the investment bank still believes that the case for higher oil prices is still strong
.

Goldman Sachs said in a report on Sunday that low trading liquidity and market worries have lowered oil prices
in recent weeks.
The bank's strategists noted that these concerns include fears of recession, the release of oil reserves in the United States, the rebound in Russian crude oil production, and pandemic-related lockdowns
in Asia.

Goldman Sachs also lowered its price forecast for Brent crude oil for the fourth quarter to $
125 from $130 a barrel previously.
However, the forecast for 2023 remains unchanged at $125 per barrel
.

Goldman Sachs strategists wrote in a note: "We believe that even assuming all these negative shocks are over, the case for oil prices to rise remains strong, and the market shortage in recent months has been higher than we expected
.
" ”

The bank has been bullish on oil prices throughout the year and continues to be bullish on crude oil prices despite lowering its near-term oil price
forecast.

In mid-July, Goldman Sachs said that while the sell-off continued, "the price movement was completely skewed to the upside.
"

Goldman Sachs analysts wrote in a July report that the risk to the upside of oil prices is very high
due to low inventories and the possibility of Saudi Arabia/UAE increasing production to 500,000 barrels per day, which will further deplete "record low spare capacity.
"

In Sunday's report, Goldman Sachs said: "We still expect Brent crude prices to need to be much higher than market forward prices
.
" ”

Brent crude oil continuous daily chart

At 11:38 Beijing time on August 9, Brent crude oil was continuously reported at $96.
42 per barrel
.