Oil extended losses amid persistent concerns around the demand outlook as Goldman Sachs Group Inc. cut its price forecast again.
Brent futures fell below $74 a barrel after capping a 1.8% decline last week, the biggest weekly drop since early May. Goldman made its third downward price revision for the global benchmark in six months, trimming its estimate to $86 for the end of the year on rising supplies and waning demand.
Oil in London is around 14% lower this year as fears of a US slowdown, China’s anemic economic recovery and robust Russian flows weigh on the outlook. Even a recent pledge by Saudi Arabia to cut more production in July failed to keep prices elevated, with traders less and less responsive. The immediate gain after the announced curbs a week ago lasted only a day.
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