Goldman sees downside risk to oil price forecasts for 2025/2026
1. Goldman Sachs warns of higher crude supply and weaker demand forecasts. 2. Tariff escalation may further impact oil prices adversely.
FAQ
Why Bearish?
Increased crude supply and reduced demand can lead to lower oil prices. Historical trends show that similar market conditions have negatively impacted oil ETFs like BNO.
How important is it?
The article discusses factors influencing crude oil prices, which directly affect BNO's valuation. The concern over oversupply and tariffs creates a bearish sentiment in oil-related investments.
Why Short Term?
The immediate effect of increased supply and demand concerns can lead to short-term price drops. Previous downturns in oil futures have quickly followed similar forecasts.