Oil Prices Break Winning Streak and Drop 2%

Goldman Sachs Cuts 2025 Brent Price Forecast by $5 per Barrel, Citing Slower Demand in China.

Oil prices fell by nearly 2% on Tuesday, amid concerns that slower economic growth in the United States and China could reduce energy demand, particularly after prices surged by more than 7% over the previous three days.

Brent futures dropped $1.88, or 2.31%, to $79.55 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.89, or 2.44%, to settle at $75.53 per barrel. Despite today’s significant decline, prices remain within the range of a normal and warranted correction following a substantial three-day advance of $6 per barrel.

Technical traders noted that prices for both contracts retreated after failing to break through a resistance level near the 200-day moving average on Monday.

In the United States, consumer confidence reached a six-month high in August, but people are increasingly concerned about the job market.

The rise in unemployment has contributed to expectations that the U.S. Federal Reserve will cut interest rates next month. Lower rates could boost economic growth and increase demand for oil.

Goldman Sachs cut its average Brent price forecast for 2025 by $5 per barrel, citing slower demand growth in China. The bank reduced its Brent price range to $70-$85 per barrel, with the average forecast for 2025 lowered to $77 per barrel from $82.