Goldman Sachs Predicts Brent Crude to Reach $86 amid Supply Deficit

Analysts at Goldman Sachs have forecasted that Brent crude oil prices could climb to $86 per barrel in the third quarter of the year. This projection is based on the anticipation of heightened summer transportation and cooling demands leading to a substantial deficit of 1.3 million barrels per day.

The investment bank has set a floor price of $75 for Brent, citing that lower prices stimulate demand, while a ceiling of $90 is expected due to elevated global inventories and the decisions made by OPEC+ regarding production levels.

Conversely, UBS analysts have noted that long positions, indicating confidence in future price increases, are currently at their lowest levels since 2011, while short positions, reflecting bets on price declines, are nearing record highs.

Market participants are closely monitoring the upcoming Federal Reserve meeting and inflation data, along with reports on the oil market from OPEC and the International Energy Agency scheduled for Tuesday and Wednesday.