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Increasing Chance of OPEC+ Cut Extension Amid Bearish Fundamentals: Goldman

OIL

The chances that OPEC+ will fully extend existing cuts beyond Q2 are increasing amid “incrementally bearish fundamentals,” according to Goldman Sachs.

  • Brent prices have pulled back from the high-$80s/bbl due to Israel-Hamas cease-fire talks and higher US inventories.
  • “Commercial stocks keep building both in DMs and now also in EMs, and physical prices and prompt spreads have softened too.”
  • Supply rose 0.5mb/d w/w according to the bank’s high-frequency data.

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