Goldman Sachs expects global oil market to return to surplus as Middle East tensions ease

Goldman Sachs has forecast that the global oil market will return to a supply surplus as the impact of the Iran-Iraq conflict diminishes and shipping through the Strait of Hormuz returns to normal, AzerNEWS reports.

According to the investment bank, increased demand driven by the replenishment of strategic petroleum reserves will support consumption but will not be sufficient to eliminate the expected oversupply in the market.

Goldman Sachs said that as the effects of the conflict involving Iran continue to fade and oil transportation through the Strait of Hormuz normalizes, the global crude market is expected to move back into surplus conditions.

A co-head of Global Commodities Research at Goldman Sachs said in an interview that the bank expects the market to return to a supply surplus once flows through the Strait of Hormuz are fully restored.

The analyst added that Goldman Sachs forecasts an average global supply surplus of slightly more than 3 million barrels per day next year, underscoring expectations of ample oil availability despite stronger demand from strategic stockpiling efforts.