Monday 8 June 2020

$35 Brent: Goldman Sachs Turns Bearish On Oil | OilPrice.com

$35 Brent: Goldman Sachs Turns Bearish On Oil | OilPrice.com:

The relief rally in oil may be coming to an end as oil market fundamentals are turning bearish once again and pointing to Brent Crude slipping back to $35 in the short term, Goldman Sachs said on Monday, citing still uncertain demand recovery and returning production from the U.S. and Libya.

Despite the recent optimism that supply cuts from OPEC+ and economics-driven curtailments in North America will combine with rebound in demand, Goldman Sachs warns that there are four key reasons why oil prices are in for a pullback in the coming weeks, according to a note from the bank’s Senior Commodity Strategist Damien Courvalin cited by ZeroHedge.

In early May, Goldman Sachs expected that oil demand could rebound enough to exceed supply by the end of May.

But now, “demand expectations are running ahead of a more gradual and still uncertain rebound,” according to the Wall Street bank.

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