October 05, 2023 08:31 GMT
Goldman Cites Three Main Factors in Recent Crude Selloff
Goldman Sachs said in a client note the recent sharp selloff in Brent reflects three main factors:
- Very weak EIA data for gasoline demand in the US – prompting a sharp selloff in gasoline margins which has spilled over into crude markets.
- A shift in the crude curve driven by a rate-driven 2024 recession. Goldman says a soft landing in the US is still on track.
- The third factor is placed on technical factors “including last Friday’s expiration of the November Brent contract and CTA selling.”