Goldman Sachs sees $30 as the right place for oil now
If prices go any higher, production will restart and the market could experience another rout
After extreme price plunges amid the Covid-19 pandemic, oil rallied in the past week, recovering to $30 (R549) a barrel as the market rebalances. However, analysts warn that prices need to stay low for the next three months to avoid another rout.
The Covid-19 pandemic and resultant economic shutdowns to curb the spread of the virus hit the oil price particularly hard. Brent crude oil crashed below $20 a barrel and US oil prices last month turned negative on storage concern.