Oil Bounces Over 1% on Goldman Sachs Comments
Oil benchmarks
on both sides of Atlantic resumed its recent upsurge after a brief drop
seen last Friday, in response to the optimistic comments from long-time
bear Goldman Sachs on oil fundamentals.
Oil awaits weekly supply reports
Currently, both crude benchmarks extend further to the upside, with
Brent up 1.38% at $ 48.50 while WTI oil rallies 1.34% to $ 46.83. Oil
prices jumped higher and kicked-off the week on a stronger footing after
markets cheer a drastic turnaround in Goldman Sach’s forecasts on the
oil supply.
Goldman Sachs said in its latest note, "The oil market has gone from
nearing storage saturation to being in deficit much earlier than we
expected," while adding that the "likely shifted into deficit in May ...
driven by both sustained strong demand as well as sharply declining
production."
Moreover, growing supply concerns globally, with oil production in
Nigeria, Venezuela and China declining, further added to the upbeat
sentiment around the black gold. Focus now turns towards the weekly
crude reserve report due Tuesday and Wednesday for fresh insights on the
oil supply scenario.
