Oil Prices Set to Plummet in the 4th Quarter and 2025 – Experts Predict

Prepare for Choppy Waters: Morgan Stanley, Goldman Sachs, and Citi Predict Oil Price Decline in Q4 and Beyond

Get ready to tighten your financial belts as investment banking giants Morgan Stanley, Goldman Sachs, and Citi have set the stage for a tumultuous ride in the world of oil prices. Brace yourself as we delve into the forecasted winds of change that are expected to blow the price of black gold off its pedestal.

1. Morgan Stanley’s Revised Forecast
   • Morgan Stanley, known for its keen insights into the market, has once again adjusted its forecast for oil prices. Anticipating a turbulent road ahead, the investment bank expects the international benchmark to average around US$ 75 a barrel in the final quarter of the year. This adjustment is fueled by the looming storm on the demand side, which has been the primary driver behind their decision to slash the Q4 oil price forecast.
2. The Downward Spiral Continues
   • This recent revision marks the second time in a little over two weeks that Morgan Stanley has adjusted its oil price forecasts. Initially pegging the Brent price for Q4 at US$ 85 per barrel, the Wall Street giant has now altered its expectations to the lower end of the spectrum at US$ 80. Concerns about elevated supply from OPEC and non-OPEC players, coupled with signs of waning global demand, have contributed to this downward revision.
3. A Ripple Effect Across the Board
   • The ripple effect of Morgan Stanley’s cautious outlook on oil prices has reverberated through the market, echoing in the corridors of power at other major investment banks. In a collective nod to the changing tides, Goldman Sachs has downgraded its expected range for Brent oil prices by five dollars to US$ 70/US$ 85 per barrel. Citing weaker Chinese oil demand, burgeoning inventories, and a surge in U.S. shale production, the bank is bracing for a tumultuous trajectory in the oil market.
4. Citi’s Prognostication
   • Not to be left behind in the fortune-telling game, Citi has also weighed in on the future of oil prices. The banking behemoth foresees a scenario where prices could tumble to US$ 60 per barrel next year if OPEC+ fails to enforce further production cuts. With a backdrop of sluggish demand and aggressive supply from non-OPEC players, the road ahead looks treacherous for the oil market.

As we navigate the choppy waters of the oil price landscape, one thing remains clear – uncertainty looms on the horizon. Investors, analysts, and industry insiders are bracing for a bumpy ride as market dynamics shift and forces of supply and demand play out their intricate dance. Stay tuned, stay informed, and be prepared for the unexpected in the volatile realm of oil prices.