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OIL: Summer Deficit to Drive Modest Brent Rise to $86/bbl in August: Goldman

OIL

Goldman Sachs see Brent rising “modestly” to an August peak of $86/bbl amid a summer deficit, according to Bloomberg.

  • The deficit has started to show “more vividly” as global and OECD stockpiles switch to draws.
  • Prices have shrugged off a hawkish Federal Reserve and disappointing China May economic data.
  • There is “plenty of room for financial demand to recover” with managed money net longs for Brent still near a record low despite a rise last week.  

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