Goldman predicts summer fuel demand to cause oil supply deficit, leading to higher oil prices.

• On Monday, oil prices increased after experiencing a decline the previous week due to the OPEC+ decision to boost production in the near future.
• According to Goldman Sachs analysts, Brent is predicted to reach $86 in the third quarter due to the summer fuel demand causing a significant shortfall.
• This year, Brent is predicted to range between $75 and $90 by the investment bank.

On Monday, crude oil futures experienced a slight increase, with analysts predicting a supply deficit in the coming weeks due to rising summer fuel demand.

According to Goldman Sachs analysts, Brent is expected to reach $86 in the third quarter due to increased demand for transportation and cooling during the summer, resulting in a significant deficit of 1.3 million barrels per day.

Here are today's energy prices:

• The July contract price for a barrel of oil is $76.38, which represents an increase of 85 cents or 1.1%. To date, the US has achieved a 6.6% gain in the year.
• The August contract price is $80.44 per barrel, which represents an increase of 81 cents or 1%. In comparison to the year-to-date global benchmark, this price is ahead by 4.4%.
• The price of gasoline in July, as per RBOB Gasoline contract, is $2.39 per gallon, representing a 0.67% increase. To date, gasoline futures have risen by 14% yearly.
• The July contract price for gas is $3.09 per thousand cubic feet, which represents a 5.96% increase. To date in the year, gas prices have risen by 22.6%.

Last week, oil prices experienced a decline following OPEC+'s decision to boost production from October 2021 to September 2025.

Goldman analyst Daan Struyven advised clients in a Sunday note that OPEC+ has the option to delay, pause, or reverse its decision to increase oil production in order to stabilize the market.

Brent's price range is predicted by Goldman to be between $75 and $90. Lower prices are expected to increase demand, while higher global inventories and the OPEC+ production decision may limit the ceiling.

An analysis by UBS shows that long positions, or bets that futures prices will rise, are at their lowest level since 2011, while short positions are near record highs.

UBS analyst Giovanni Staunovo stated that the viewpoint is overly pessimistic. Inventories are expected to decline in the upcoming weeks, and demand will rise to 2.5 million bpd from 2 million bpd by August.

The Federal Reserve meeting and inflation data, as well as oil market reports from OPEC and the International Energy Agency, are being anticipated by traders.