- Oil prices continued to slide Monday morning following the biggest weekly drop since August
- Attention continues to remain on China’s Covid-19 policy as the world’s largest oil importer had its first reported Covid-related death in almost six months (Bloomberg)
- Investment bank Goldman Sachs lowered its Q4 forecast for Brent crude by $10/Bbl to $100/Bbl, according to a note to clients
- The lower forecast comes amid the possibility of further lockdowns in China as Covid-19 cases climb
- GS lowered its demand expectations by 1.2 MMBbl/d in Q4
- The Group of Seven nations plan to announce their oil-price cap this week (Bloomberg)
- The cap would ban companies from providing shipping services, such as insurance, brokering, and financial assistance, needed to transport Russian oil unless a price cap was met
- Most G7 nations and the EU will stop importing Russian crude this year
- AEGIS notes that the actual amount of Russian crude production impacted by the sanctions will be key to supply and demand balances next year. Analysts’ estimates of impacted Russian crude supply range from about 300 MBbl/d lower than current levels to a 1.5-MMBbl/d reduction