Goldman Sachs Warns Weak Demand in China and Europe Threatens Oil Price Outlook

Goldman Sachs has flagged weak demand in China and Europe as a major risk to its oil price forecast. The brokerage's fourth-quarter Brent crude forecast of $90 per barrel and WTI forecast of $83 could be revised downward due to the decline in demand.

Apart from China and Europe, indicators for road fuel consumption remain weak in several countries, including those in Western Europe. However, demand appears resilient in the U.S. and India, according to Goldman Sachs.

The market has become increasingly optimistic about a potential long-lasting ceasefire between the U.S. and Iran, leading to reduced investor positioning and physical destocking ahead of the anticipated reopening of the Strait of Hormuz.