Goldman Sachs warns: Oil prices are at risk of rising above $110
Oil prices fell slightly today, Thursday, after a 3-day rise, but the Bank… "Goldman Sachs" It warned that the market remains vulnerable to a new rise in prices, as China is expected to return to the market to rebuild its crude oil stocks, while global emergency stocks have been significantly depleted due to the conflict in the Middle East.
The bank indicated that renewed purchases of China, along with continued disruption to shipments through the Strait of Hormuz, may further tighten global supplies, warning that Brent crude could rise above $110 a barrel if disruptions in the waterway continue, although he expects prices to stabilize once normal flows resume.
He explained "Goldman Sachs" One of the most important developments to watch for is China, which relied heavily on its domestic reserves during the conflict rather than purchasing crude oil from the international market. As prices decline from recent high levels, Beijing is expected to replenish its strategic reserves, which will add new demand to an already tight market.
It reached Brent crude futures were at $84.53 per barrel on Thursday after rising about 12% over the previous three sessions, while US West Texas Intermediate crude fell 0.3% to $79.36 per barrel, as traders took profits following the recent rise.
According to the International Monetary Fund, a crude oil supply shortfall of about 4 million barrels per day between March and May was largely offset by withdrawals from… Strategic petroleum reserves and commercial stocks.
The International Energy Agency coordinated a record withdrawal of about 400 million barrels of emergency reserves during the Iranian conflict, while China reduced refining operations and relied on its reserves.
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