Goldman considers recent drop in crude oil “excessive”, reiterates forecast of 85 dollars / barrel

Illustrative file photo of the Goldman Sachs logo in New York April 17, 2018. REUTERS / Brendan McDermid /

Nov 22 (Reuters) – The recent drops in crude prices were “excessive” as the oil market remains in deficit, Goldman Sachs said, adding that it reiterates its forecast of $ 85 a barrel for the fourth quarter.

Crude prices broke out of seven-week lows on Monday but remained under pressure after Japan said it is considering releasing oil reserves and at a time when the worsening COVID-19 situation in Europe raises concerns. on demand.

“In fact, the magnitude of the deficit is sufficient on its own to absorb the currently perceived resistance to the bullish oil thesis, and lower prices actually reduce the odds of a strategic release,” the bank said in a note dated May 29. Friday.

He also indicated that concerns about Chinese growth, its real estate sector and its impact on oil demand may have contributed to the decline in crude, but the downward movement has “exceeded” that risk.

(Report by Seher Dareen and Nakul Iyer in Bengaluru; edited in Spanish by Carlos Serrano)

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