Oil: Bullish view remains unchanged despite any US SPR release – Goldman Sachs

Oil prices are likely to continue with their uptrend amid strong demand, which will offset the negative impact from any US Strategic Petroleum Reserve (SPR) release, the Goldman Sachs analysts explained in their recent note.

Key quotes

“Any release from the US Strategic Petroleum Reserve (SPR) would provide only temporary price relief, and could backfire if it dissuades shale producers. “

“Our bullish view remains unchanged.”

“The oil deficit remains unresolved.”

“The current strength in oil demand remains a near-term tailwind and the increasingly structural nature of the deficits will require much higher long-dated oil prices.”

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