Goldman Sachs analyst Damien Courvalin pointed out four reasons for lowering the Brent crude price to $35 per barrel.
Firstly, high oil prices and slow recovery in fuel demand cause oil processing profits to drop to record low levels.
The second reason is the extremely unstable situation in the market.
Thirdly, oil production is likely to rise in the US and Libya.
Finally, the gradual easing of production restrictions by participants of the OPEC + deal may lead to a fall in oil prices, as they have reached the necessary levels. Besides, China would reduce the volume of purchases.
According to the analyst, despite a billion barrels excess in global storage, there was still a shortage in the oil market at the end of May. Nevertheless, oil prices continue to rise.
The expert also claims that oil is a physical asset, and its large global reserves would soon destroy the strong correlation between the quotation of black gold and other financial assets. That is the problem. The oil market recovery would take a lot of time and patience.
