Goldman sachs: Oil Prices Face Two-Way Risks as Weak Demand Battles Middle East Supply Losses

  June 1 — Goldman Sachs Group believes oil prices face two-sided risks as weak demand competes with supply losses in the Middle East caused by the war in Iran. Analysts including Daan Struyven said in a May 31 report that April oil sales data from Western Europe suggest a downside risk of about 2 million barrels per day to the bank’s already “very low” demand forecast for April. This adds downside risk of about $10 per barrel to its forecast of $90 per barrel for Brent crude in the fourth quarter. Goldman analysts said: “We believe that Middle East supply losses could last longer, posing significant upside price risks, but weak demand also presents significant downside price risks. Actual end-user oil demand may decline more than expected due to rising prices.”