Highlights
All the weakness in crude oil prices is based upon the gloom and doom predictions for the worlds’ economy, most especially China’s economy, whose industrial PMI for September was 50.4, up 0.6 from July. As far as the US economy goes, who thinks lower interest rates coming in less than two weeks will slow down economic growth?
Goldman Sachs cut its expected crude oil price range by $5 a barrel for 2025. They expect crude to average $80 per barrel next year with a range of $70 to $85. Bank of America reduced their price for 2025 forecast to $75 per barrel for Brent, down from $80 and lowered its price forecast for WTI to $71 per barrel from $75.
Crude oil prices traded lower this past week than any time since May of 2023. Yesterday’s cash market low for West Texas Intermediate was $67.13, down from $81.75 on July 5.