These are the levels “at which we need to see sustained prices to eventually solve the market deficit,” Courvalin said.
Demand for crude is poised to rise as power generators and industrial producers switch from pricier natural gas. The combination of relatively lower prices and the continued reopening of economies should also help boost consumption. The supply outlook is aggravated by the lack of an inventory buffer for gasoline and diesel at a time when refiners are heading into their maintenance season.
Goldman earlier this week cut its Brent forecast. Futures were up more than 2% to just below $100 a barrel as of 12:07 p.m. in New York.