Goldman Sachs said on Tuesday it expects Brent crude to trade in an $80-$90 per barrel range until there is either confirmation of a new U.S.-Iran nuclear deal or a significant escalation of their conflict.
The bank estimates spot Brent’s fair value at about $80 a barrel, suggesting markets are pricing in only a modest risk premium despite ongoing uncertainty over Middle East oil supplies.
Brent traded near $85 a barrel on Tuesday as conflicting signals from the U.S. and Iran over the status of talks to end their five-month-old war sowed uncertainty.
Goldman also said physical oil markets continue to tighten, with global visible oil inventories falling by 6.3 million barrels per day over the past two weeks.
The bank estimates Gulf oil exports have fallen to about 36% of pre-war levels on a seven-day moving average basis, from nearly 80% in early July.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
