Goldman Sachs continues to hold a bullish view on oil despite the ongoing market sell-off, reiterating in a note its stance that “the skew to prices from here is squarely skewed to the upside.” Goldman Sachs strategists, including Jeffrey Currie and Damien Courvalin, stress-tested their bullish view and found that despite growing concerns over oil fundamentals, both for higher supply and weaker demand, Brent’s fair value would remain above current market forwards in the second half of 2022 and in 2023. With low inventories and a potential Saudi/UAE ramp-up in production in the region of 500,000 barrels per day (bpd), which will further deplete “record low spare capacity,” the risks are firmly skewed to the upside, Goldman Sachs’ analysts wrote in the note. Under an adverse scenario, Brent’s fair value would be $120 in the second half of 2022 and $110 in 2023, down from Goldman’s forecasts of $135 […]