Oil bounces over 1% on Goldman Sachs comments

Oil benchmarks on both sides of Atlantic resumed its recent upsurge after a brief drop seen last Friday, in response to the optimistic comments from long-time bear Goldman Sachs on oil fundamentals.

Oil awaits weekly supply reports

Currently, both crude benchmarks extend further to the upside, with Brent up 1.38% at $ 48.50 while WTI oil rallies 1.34% to $ 46.83. Oil prices jumped higher and kicked-off the week on a stronger footing after markets cheer a drastic turnaround in Goldman Sach’s forecasts on the oil supply.

Goldman Sachs said in its latest note, "The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," while adding that the "likely shifted into deficit in May ... driven by both sustained strong demand as well as sharply declining production."

Moreover, growing supply concerns globally, with oil production in Nigeria, Venezuela and China declining, further added to the upbeat sentiment around the black gold. Focus now turns towards the weekly crude reserve report due Tuesday and Wednesday for fresh insights on the oil supply scenario.