Goldman Sachs slashed its oil forecast on Tuesday because the COVID-19 outbreak continues to stress demand.

"Demand losses throughout the advanced at the moment are unprecedented," Goldman's international head of commodities analysis Jeffrey Currie wrote in a observe to shoppers Tuesday. The agency stated that oil use has fallen by eight million barrels per day because the coronavirus has led to a close to standstill in journey, amongst different issues.

Goldman now sees U.S. West Texas Intermediate crude averaging $22 per barrel within the second quarter with worldwide benchmark Brent crude at $20 per barrel. That is Goldman's second reduce to cost forecasts in lower than two weeks.

The agency beforehand lowered its goal for WTI to $29 and Brent to $30 after the breakdown in OPEC talks earlier in March.

WTI settled at $28.70 on Monday, so the brand new goal implies a further 23% draw back forward. This is able to be on high of WTI's 53% drop this yr. Goldman's Brent goal is 33% under the contract's Monday settle of $30.05.

The drop in...