Goldman Sachs: Oil Price Plunge Is Not Justified By Fundamentals

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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.

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Original Article Source Credits:   Oil Price ,

Article Written By:  Tsvetana Paraskova

Original Article Posted on:  Nov 22, 2021

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