The bank now sees Brent crude at US$71 a barrel in December, US$5 less than previously.

Goldman Sachs cut its oil price forecasts, as tariffs reduce the outlook for US growth while OPEC and its allies boost output.

The bank now sees Brent crude at US$71 ($94.69) a barrel in December, US$5 less than previously, and US benchmark West Texas Intermediate at US$67. Brent will trade in a range of US$65 to US$80 a barrel, and average US$68 next year, analysts including Daan Struyven said in a note dated Sunday.

“The medium-term risks to our forecast remain to the downside given potential further tariff escalation and potentially longer OPEC+ production increases,” they said.

Goldman lowered its forecast for oil demand growth this year by 18% to 900,000 barrels a day as the US economy slows on higher tariffs. Higher supply from the Organization of Petroleum Exporting Countries and its allies is also contributing to looser balances.

Brent was trading at around US$71 on Monday, after falling about 14% from this year’s high in January.