Upcoming months to be marked by strong oil price fluctuations: Goldman Sachs

In the coming months, oil prices will be shaped by the demand side, but significant fluctuations in the prices of this commodity are possible, according to the Goldman Sachs forecast published on Wednesday.

"The reduction in Chinese oil demand caused by the Delta variant was largely offset by positive surprises from European, South American, and Indian countries," the bank said.

GS analysts indicate that the demand for oil from regions of the world other than China means that the global demand for this commodity has decreased only slightly. In their opinion, in the next two months, it will remain at the level of 97.8 mb / d compared to 98.4 mb / d earlier.

The forecast indicated that oil prices will be driven more by the supply side than the demand side. This is due to a slight increase in production in the OPEC + countries, the lack of prospects for launching exports from Iran in the near future, and the discipline of shale gas producers.

"As a result, GS analysts expect the deficit to remain stable in the short term and Brent crude oil to reach $80 / bbl in 4Q 2021. At the same time, GS economists warn that the coming months may be marked by significant oil price fluctuations," Goldman Sachs forecast.

(PAP)