Oil extended losses amid persistent concerns around the demand outlook as Goldman Sachs Group Inc. cut its price forecast again.
Brent futures traded below $73 a barrel after capping the biggest weekly drop since early May last week. Goldman made its third downward price revision for the global benchmark in six months, trimming its estimate to $86 for the end of the year on rising supplies and waning demand.
Oil in London is around 15% lower this year as fears of a US slowdown, China's anemic economic recovery and robust Russian crude flows weigh on the outlook. Even a recent pledge by Saudi Arabia to cut more production in July failed to keep prices elevated, with traders less and less responsive. On Monday, Brent's nearest timespread was nearing a flip into a bearish contango structure, which signals oversupply.
Brent for August settlement fell 2.7% to $72.74 a barrel at 10:04 a.m. in London. WTI for July delivery dropped 2.9% to $68.12 a barrel.
Source : Bloomberg
