Goldman Sachs believe that Brent oil will recover in the short term. They are argued for increased supply risks and improved demand.
The bank believes that this fall in Brent's prices is sufficient, and fundamentally we have conditions of increased supply risks (from Iran, Venezuela, Libya, Russia), the refineries are starting to work again at a high pace. In the coming weeks, they expect some bounce in the price of the Brent variety.
Over the next few months, the bank believes that the balance between supply and demand will return, which will stabilize the oil market, especially as transport links in the Permian Basin are optimized and OPEC returns to its normal recovery rate again. The bank also expects the problems in Russia to be temporary, which will be followed by higher production. GS predicts that the price of the Brent variety will gradually decline to $ 65.5 a barrel at the end of this year, followed by stabilization in price.
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