The West Texas Intermediate (WTI) for July delivery tanked 3.05 U.S. dollars, or 4.35 percent, to settle at 67.12 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for August delivery lost 2.95 U.S. dollars, or 3.94 percent, to settle at 71.84 U.S. dollars a barrel on the London ICE Futures Exchange.
Goldman Sachs has cut its forecast on Brent crude oil futures to 86 U.S. dollars per barrels by December 2023, down from earlier forecast of 95 U.S. dollars per barrel, according to a report by the investment bank issued on Sunday.
Meanwhile, WTI crude oil futures are expected to cost 81 U.S. dollars per barrel by the end of 2023 rather than the earlier forecast of 89 U.S. dollars per barrel.
"WTI oil retreats as traders focus on the revised forecasts from Goldman Sachs," noted Vladimir Zernov, analyst with market information supplier FX Empire.
Investors also stayed cautious ahead of the release of monthly reports by the International Energy Agency and the Organization of the Petroleum Exporting Countries as well as monetary policy meetings in the United States, European Union and Japan this week.
Oil prices plummeted Monday morning as the focus moved away from the supply side to fears about the demand side, according to Phil Flynn, senior analyst at The PRICE Futures Group.
"Reports that Saudi Aramco pledges to supply full crude volumes to Asian refiners despite the production cut are raising concerns about Saudi's commitment to the lollipop go-it-alone production cut," said Flynn.
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