- Oil prices neared their six-week highs Monday morning as Gulf of Mexico oil supply is slow to recover
- About half of the crude output (884 MBbl/d) in the U.S. Gulf had yet to resume as of Sunday
- Backwardation in oil to swell with rising prices in 4Q, Goldman Sachs says
- The oil market remains largely in deficit, and low OECD stocks will drive the forward curve into steeper backwardation (GS, Bloomberg)
- Longer-dated prices will rise as well, incentivizing higher production Goldman Sachs analysts Damien Courvalin said in a report
- “Accordingly, we reiterate out $80/Bbl price target for 4Q21 with upside risks to 1H22”
- Going into autumn, oil is poised to rally significantly, particularly should the Iranian deal fall apart, the bank said in Sept. 13 note