---
title: "Has oil price fallen too much? Goldman Sachs: About to rebound by over 10%!"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/214038464.md"
description: "Goldman Sachs expects Brent crude oil prices to rebound by over 10% in the next quarter, with an average price reaching $77 per barrel. Recently, oil prices have dropped significantly, with Brent crude oil falling below $70 per barrel for the first time and WTI crude oil also experiencing a decline. OPEC has lowered its global oil demand forecast, coupled with weak economic data from China and the U.S., triggering market concerns about oil consumption. However, Goldman Sachs points out that despite macro factors leading to selling pressure, physical market demand remains strong, which may indicate a reversal in oil prices"
datetime: "2024-09-11T07:27:52.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/214038464.md)
  - [en](https://longbridge.com/en/news/214038464.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/214038464.md)
---

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# Has oil price fallen too much? Goldman Sachs: About to rebound by over 10%!

Investment Insights - **Brent crude oil fell below $70 for the first time since December 2021, with Goldman Sachs forecasting an average price of $77 per barrel for Brent crude in the next quarter.**

On September 10th, oil prices plummeted. Brent crude fell below $70 per barrel for the first time since December 2021, dropping over 3% intraday to close at $69.66 per barrel. WTI crude oil fell 4% to close at $66.24 per barrel.

Since the beginning of the year, Brent crude oil has fallen by 10%.

【Source: TradingView; 2024 Brent Crude Oil and WTI Crude Oil Trends】

The reason for this sharp decline is OPEC's downward revision of global oil demand growth forecasts. It predicts global oil demand will grow by 2.03 million barrels per day this year and by 1.74 million barrels per day in 2025, lower than the previous expectations of 2.11 million barrels per day and 1.78 million barrels per day.

Combined with weak economic data from China and the United States, this has raised concerns in the market about oil consumption demand.

Wall Street generally believes that there will be a severe oversupply of oil supply in 2025, potentially causing oil prices to fall to around $60.

**However, Goldman Sachs has identified an anomaly behind the sharp drop - a significant divergence between physical and futures market demand.**

Despite the sell-off triggered by macro factors, Goldman Sachs observed a decrease of 0.6 million barrels per day in net supply tracked last week due to reduced production in Russia and Canada and a moderate recovery in Chinese demand.

In stark contrast to strong physical demand, oil financial demand has dropped to historic lows. Speculators currently hold the lowest net long positions in crude oil on record.

In an environment where physical purchases are healthy but prices are artificially depressed, this divergence may signal a reversal in oil prices.

Goldman Sachs forecasts that the average price of Brent crude in the next quarter will reach $77 per barrel, representing a rebound of over 10% from the current price

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