The Strategist

Goldman Sachs expects oil price dropping to $35

06/10/2020 - 05:12

The price of a barrel of Brent in the short term will drop to $ 35, Goldman Sachs forecasts. On Monday, its value for the first time since early March exceeded $ 43.

The price of oil is likely to decline in the coming weeks due to uncertainty about future demand and the difficult situation of storage congestion. This was reported by Goldman Sachs, reports Reuters.

The fall in refining profits to an unprecedented low reflects that the price of oil is too high and that the recovery in demand is negligible, Goldman Sachs noted. In the short term, the bank expects Brent to fall to $ 35 per barrel.

On Monday, the price of Brent for the first time since the beginning of March exceeded $ 43 after extending a record deal by OPEC + countries that agreed to reduce total production in July to 9.6 million barrels per day.