Crude oil prices (CLK24) have surged this year on the back of extended OPEC+ cuts, which could cause supply deficits; diminished hopes of a Middle East cease-fire, Ukrainian drone attacks on Russian refineries and retaliatory attacks on Ukraine; Red Sea ship incidents; and economic data showing a surprisingly strong U.S. economy.
And demand is projected to remain robust. In fact, analysts at Goldman Sachs (GS) recently noted that rebounding demand in Europe would add $5 a barrel to the firm’s estimate of $83 a barrel, on average, for Brent crude prices (CBM24) in Q4 of 2024.
