Oil prices have fallen more than 9% on Monday, extending losses from last week, when crude markets experienced their biggest monthly losses in six months period owing to lower demand and fears of trade wars slowing down Global Economy.
Brent crude futures were trading at $61.2 on Monday. That was 83 cents, or 1.3%, below last week’s close.
U.S. West Texas Intermediate (WTI) futures were at trading at $52.88 per barrel, down 62 cents, or 1.2% from the week.
The oil price decline followed a bearish spell of more than 3% on Friday, which made “May” the worst-performing month for crude futures in Six Month Period.
Oil prices have witnessed significant decline as U.S. President Donald Trump stirred up global trade war by threatening to impose tariffs on Mexico, one of the largest U.S. trade partners and a major supplier of crude oil. Furthermore, The U.S.-China Trade feud also remains critical to the global growth outlook and resultant Oil Demand.
Despite bearish sentiments, Goldman Sachs predicts Brent Crude Price to average around $ $65.50/bbl for 3Q2019. In a note to investors, Goldman Sachs contends that “An increasingly uncertain macro outlook as well as rising U.S. production and large available core-OPEC spare capacity helping offset declining supply from Iran and Venezuela, we instead expect prices will likely remain around our 3Q forecasts and current levels, albeit with still high price volatility, ”