Global Demand Slump and Prospects of US-Iran Ceasefire Threaten Oil Price Forecasts

 Goldman Sachs has warned that weak oil demand in China and Europe poses a significant risk to its previous crude price forecasts for the fourth quarter of the year, despite ongoing geopolitical tensions in the Middle East. The bank explained that recent demand indicators exert increasing pressure, which could lead to a downward revision of Brent crude price forecasts by approximately $10 per barrel. This is attributed to declining fuel consumption and lower operational rates in Asian petrochemical plants. Conversely, the bank noted growing market optimism regarding a potential long-term ceasefire between the United States and Iran, prompting investors to reduce their positions in the oil market ahead of the anticipated full reopening of the Strait of Hormuz.