Brent crude is trading down $1.00 to $95.16 today but Goldman Sachs don’t think those prices will last.
The US just announced the final SPR tender of 15 million barrels and that will take a big chunk out of supply. The bigger risk is around Russia with the G7 still mulling a price cap.
Today physical oil trader Vitol said it expects Russian supplies to fall by 500k-1 million barrels per day in the winter. An EU ban begins on December 5 and orders for those cargos would already be cancelled.
Goldman Sachs believes it will all add to prices. They have maintained a forecast of $115 brent in Q1 of next year and say risks are skewed higher.