KEYFACT Energy
Brent crude oil has slumped to ~$72/bbl in recent days, the lowest point since early April, but Goldman Sachs analyst Damien Courvalin thinks Brent could touch the $80s again later this fall.
"Ultimately, global inventories are low, oil demand remains robust and we still expect a deficit once U.S. secondary sanctions are reintroduced. As a result, we still expect Brent prices to retest $80/bbl, although U.S. oil policies may leave this occurring late this year rather than this summer as we previously expected," Courvalin writes.
Courvalin attributes the weakness in Brent time spreads to stranded North Sea barrels as a result of a rise in U.S. exports and a slowdown in Chinese imports, not because inventory is starting to bloat again.