Oil held losses amid persistent concerns around the demand outlook as Goldman Sachs Group Inc. cut its price forecast again.
Brent futures traded below $75 a barrel after capping a 1.8% decline last week, the biggest weekly decline since early May. Goldman made its third downward price revision for the global benchmark in six months, trimming its estimate below $90 for the end of the year on rising supplies and waning demand.
Oil in London is around 13% lower this year as fears of a US slowdown, China’s anemic economic recovery and robust Russian flows weigh on the outlook. Even a surprise pledge by Saudi Arabia a week ago to cut additional production in July has failed to keep prices elevated.
There are some bullish signs, however. Hedge funds boosted bullish bets on Brent and West Texas Intermediate crude in the week ended June 6. The US Federal Reserve is also expected to skip an interest-rate hike after a year of increases, a move likely to buoy energy demand.
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