Goldman predicts that crude oil demand will increase as the economies reopen, and power generators and workers switch to natural gas. As refiners enter maintenance, there is a shortage of gasoline and diesel inventory buffers. This limits supply.
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This warning is part of a wider warning by Goldman Sachs about a commodities markets that “hold unreasonable expectations”, as prices drop together, inventories fall together, demand beats anticipation and supply disappoints,” Jeffrey Currie from Goldman’s commodities research department said this week.
Brent crude oil rose 3.4% and was at $98.15/bbl. WTI gained 3.5% to reach $92.09/bbl.