Goldman Sachs fell into line with other banks as it cut its 2012 Brent crude and copper price forecasts, on growing worries that the European financial crisis would restrain economic growth and curb global fuel demand.

It trimmed its 2012 Brent price estimate to USD 120 a barrel from USD 130 and cut its forecast for US light crude, also known as WTI, to USD 109 from USD 123.50.

Goldman Sachs had the highest Brent 2012 forecast of USD 130 a barrel in the latest Reuters monthly oil poll, well above an average of $106.8 a barrel next year.

It is now in line with forecasts by other banks, including UniCredit, and below forecasts from ANZ Bank and CIBC.

Goldman Sachs analysts wrote in a note “The market continues to focus on the risk of a new economic recession, triggered by the stress on the European financial and banking system. We expect the financial stress in Europe will continue to present headwinds to economic and oil demand growth next year.”

A growing number of analysts have trimmed their oil price forecasts over the last three months amid growing concerns about the economic outlook and the European debt crisis.

(Sourced from Reuters)