Goldman Sachs lowers the price goal of crude oil by 5.5% amid tariffs to Brent, WTI hit four years low on OPEC+ Supply | Einsmark news

Goldman Sachs reduces its forecast for Brent Crude’s average price by 5.5% to $ 69 a barrel this year and for WTI prices by 4.3% to $ 66, citing the risks of higher OPEC+ offering and the global trade war causing a recession. The Wall Street broker also cut its average price forecast of 2026 for Brent by 9% to $ 62 and for WTI by 6.3% to $ 59 and warned that the new estimates could be further reduced. “The risks to our reduced oil price forecast are to the disadvantage, especially for 2026, given growing risks for recession and to a lesser amount of higher OPEC+ offer,” Goldman analysts said in a note. Brent oil was priced at $ 69.59 a barrel of 0408 GMT on Friday, while WTI was at $ 66.39. Rough prices have placed their largest percentage of declines since 2022 on Thursday after US President Donald Trump slapped reciprocal rates on many countries and eight OPEC+ members unexpectedly advanced their plan to export production cut by increasing production in May. The latter, Goldman says, showed the OPEC’s flexibility to quickly implement large output steps, which reduced the likelihood of a price increase in the short term of lower supply. The broker said it now expects oil demand to grow by only 600,000 barrels per day (BPD) this year, lower than its previous forecast of 900,000 BPD, and to rise by 700,000 BPD on Friday. Oil prices rose 7% on Friday to rise their lowest in more than three years, as China increased the lead on US goods. China, the world’s top oil importer, has announced that it will impose additional rates of 34% on all US goods from April 10. Nations around the world have read retaliation after Trump increased the tariff to their highest in more than a century. Commodities including natural gas, soybeans and gold also dived, while the global stock markets tumbled. The investment bank JPMorgan said it now sees a 60% chance of a global economic recession by the end of the year, of 40% before. Global Benchmark Brent Futures lost $ 4.56, or 6.5%, lower at $ 65.58 a barrel, while the US Western Texas -Tuss -entry futures lost $ 4.96, or 7.4%, at $ 61.99. On the session low, Brent dropped to $ 64.03 and WTI hit $ 60.45, their lowest in four years. For the week, Brent was down 10.9%, his biggest weekly loss in percentage terms in a year and a half, while WTI achieved its biggest decline in two years with a 10.6%decline. Trump’s new rates are ‘bigger than expected’ and the economic fall, including higher inflation and slower growth, is likely to be too, Federal Reserve chairman Jerome Powell said in remarks suggesting that the potentially difficult set of decisions ahead of the US central bank. OPEC+ increases further pressure on oil prices, the organization of the petroleum exporting countries and allies (OPEC+) has decided to promote output increases plans. The group now intends to return 411,000 barrels per day (BPD) to the market in May, higher than the previously planned 135,000 hp. A verdict by a Russian court that the Caspian Pipeline Consortium (CPC) Black Sea Exporting terminal facilities should not be suspended, must also have the prices lower under pressure. The decision could occur a possible decline in Kazakhstan’s oil production and supplies. Imports of oil, gas and refined products have received exemptions from Trump’s new rates, but policy can increase inflation, slow economic growth and strengthen trade disputes, weighing oil prices. Goldman Sachs analysts, with sharp cuts on their December 2025 targets, answered Brent and WTI with $ 5 to $ 66 and $ 62 respectively. “The risks to our reduced oil price forecast are to the disadvantage, especially for 2026, given growing risks for recession and to a lesser amount of higher OPEC+ offer,” the bank’s head of oil research, Daan Struyven, said in a note. HSBC has hampered its 2025 global growth in oil demand growth from 1 million bpd to 0.9 million bpd, citing rates and the OPEC+ decision. Money managers increased their net long US crude futures and options posts in the week to April 1, the US Commodity Execution Commission (CFTC) said on Friday.