Goldman Sachs Raises Oil Price Forecast Due to Supply Tightness

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On April 27, influenced by a decline in production in the Middle East, Goldman Sachs raised its fourth-quarter Brent crude oil price forecast to $90 per barrel and WTI crude oil price forecast to $83 per barrel. In a report dated April 26, Goldman Sachs’ analyst team stated: “Due to the net upside risks to oil prices, abnormally high refined oil prices, risks of refined oil supply shortages, and the unprecedented scale of this shock, the economic risks are greater than what our single crude oil baseline scenario indicates.” Goldman Sachs estimates that Middle Eastern crude oil production has decreased by 14.5 million barrels per day, leading to a record decline in global crude oil inventories at a rate of 11 to 12 million barrels per day in April.

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