Oil prices could sink below $40 under 'extreme' conditions

GOLDMAN SACHS OUTLINES 2 AGGRAVATING FACTORS FROM A LESS LIKELY SCENARIO

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Goldman Sachs Group Inc., fresh from cutting oil forecasts twice in a week, said Brent has the outside potential to fall below $40 a barrel under "extreme" outcomes as the trade war flares and supplies rise.

"In a more extreme and less likely scenario with both a global GDP slowdown and a full unwind of Opec cuts, which would discipline non-Opec supply, we estimate that Brent would fall just under $40 a barrel in late 2026," analysts, including Yulia Grigsby, said in an April-7 note.

That view does not represent the bank's current base-case outlook, which has Brent at $55 next December.

Oil shocks