Goldman Sachs: Brent oil prices “at our summer peak”
2024.06.26 05:57
Investing.com — prices have touched their “summer peak” of $86 per barrel, according to projections from analysts at Goldman Sachs.
In a note to clients, the analysts noted that “U.S.-led strong summer traveling activity” and strong global jet demand is continuing to support the benchmark contract.
Crude prices rose Wednesday, despite a surprise jump in U.S. stockpiles, as traders weighed geopolitical risks and confidence surrounding the summer driving season.
By 05:40 ET (09:40 GMT), the Brent contract climbed 0.8% to $84.91 a barrel, while the futures (WTI) traded 0.9% higher at $81.56 per barrel.
Data from the American Petroleum Institute, released on Tuesday, showed that U.S. oil inventories grew by around 0.9 million barrels in the week to June 21.
This was something of a surprise given expectations for a draw of 3 million barrels, but is largely being overlooked as investors anticipate inventory drawdowns in the third quarter. The official numbers from the Energy Information Administration are due later in the session.
Both the Brent and WTI contracts are still sitting on strong gains over the past two weeks. The Goldman Sachs analysts said persistent geopolitical tensions — Israeli strikes on Gaza and Ukrainian attacks on Russian refineries — “remain on the market’s radar.”
