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After the Goldman Sachs analysts offered their near-term upbeat outlook on Brent oil a day before, the team now believes that the bounce in oil prices could be limited and the prices are likely to decline by end-2019.

Key Quotes:

“Beyond the next couple months, however, we continue to believe that all these supply and demand crosscurrents will dissipate to bring a balanced global oil market, once new Permian transport capacity is online and core-OPEC ramps up.  

“¦ we also discuss in this report, we expect Russia’s crude issues to be transient and soon allow for higher production.  

We, therefore, remain comfortable with our view that oil prices will sequentially decline later this year with our 3Q19 Brent forecast of $65.5/bbl.”