Goldman Sachs: Oil Price Plunge Is Not Justified By Fundamentals
The recent oil price decline is not justified by fundamentals, Goldman Sachs says, keeping its estimate of Brent averaging $85 per barrel in Q4.
The move lower in oil prices so far this month has been excessive amid overblown worries about a strategic petroleum reserve (SPR) release and a hit to demand from the COVID resurgence in Europe and the United States, the U.S. investment bank said in a note to clients carried by Argus.
Since the end of October, Brent Crude prices have dropped by $8 per barrel to below $80 late last week. Concerns about the global economy with the return of lockdowns in Europe and expectations of a coordinated release of reserves from the United States and major Asian oil consumers have dragged the price of oil down over the past two weeks.
Original Article Source Credits: Oil Price , https://oilprice.com/
Article Written By: Tsvetana Paraskova
Original Article Posted on: Nov 22, 2021