Goldman Sachs warns of potential oil price fall below $40 per barrel amid tariff war

Goldman Sachs has issued a warning that oil prices could fall below $40 per barrel in an 'extreme' scenario, as global oil markets experience heightened volatility. The escalation of the trade war by the Trump administration, along with pushback from countries like China, has increased recessionary risks, posing significant challenges for energy consumption worldwide.

Of late, brent crude oil was priced at $65.05 per barrel. This follows a noteworthy decline to a four-year low earlier in the week. The ongoing trade tensions have created substantial headwinds for the global energy market, highlighting the vulnerability of oil prices to geopolitical and economic factors.

The situation underscores the precarious nature of the oil market, with geopolitical and economic uncertainties playing a critical role in shaping price movements. 

Concerns over the stability of oil prices are compounded by the potential impacts on the broader market and economy. Stakeholders must consider the implications of these developments, as the trade war continues to influence global markets. While the current situation reflects short-term volatility, the long-term trends in energy consumption and market stability remain uncertain.