Goldman Sachs says Brent remains below $100/barrel in their base case scenario as they assume already strong demand, no additional geopolitical supply will be impacted, and high spare capacity will lead OPEC+ to increase its production in the third quarter.
- According to him, geopolitical obstacles to OPEC’s ability/desire to deploy spare capacity could push Brent above $100.
- He states “we are closing our loss-making trade from Summer 24 (long Brent spreads from August 24/September 2024) with a profit as this 3 month/4 month spread now looks rich”
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Brent has fallen since the opening of the week:
This article was written by Eamonn Sheridan at www.forexlive.com.
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