Goldman Sachs cuts 2019 oil demand growth forecast, WTI hovers around $ 58

In its latest client note, the US investment banking giant Goldman Sachs made a downward revision to its 2019 oil demand growth forecast, in the wake of weakening demand from India, Japan, other non-OECD Asian regions, the Middle East and Latin America, as cited by Reuters.

Key Highlights:

Goldman Sachs revised its forecast down to 1 million barrels per day (bpd), from 1.1 million bpd but left its 2020 demand growth estimate broadly unchanged at 1.4 million bpd.

However, it stuck to its 2020 price forecast for Brent crude at $60 a barrel.

Our oil supply-demand outlook for 2020 calls for additional OPEC production cuts to keep inventories near normal.

We continue to expect OPEC will sacrifice market share in line with leadership commentary at its June meeting, which we believe will lead to Brent prices of around $60/bbl.

Meanwhile, both crude benchmarks consolidate near six-week highs, awaiting the US weekly Crude Stocks data for near-term trading impetus ahead of the key OPEC meeting scheduled on September 12^th.

The US oil, WTI, trades around the 58 handle, defending minor bids while its European peer, Brent, trades with modest gains near $ 62.75 region.