Investment bank Goldman Sachs has reiterated it’s Brent oil year-end price target of $80 per barrel, citing short-term upside risks from the reintroduction of Iran sanctions next week, according to Reuters.
Key points (Source: Reuters)
Demand growth forecast while down slightly to 1.55 million barrels per day (mb/d) and 1.45 mb/d year-over-year in 2018-19, remains above consensus expectations.
Iran exports will fall further in the face of low OPEC spare capacity and that oil demand growth will prove resilient.
2018 oil demand growth is likely not as bad as first appears, with understated EM destocking implying excessively weak apparent demand.
Chinese demand continues to surprise to the upside despite the ongoing activity slow down.
Forecasts resilient global growth, with the outperformance of the US over EM growth set to gradually reverse and with oil power demand destruction also likely to slow in the middle east next year.
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