US withdrawal from the Iran nuclear agreement and other global risk events boost
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In a report on Wednesday, Goldman said oil prices could rise further because the United States decided to withdraw from the 2015 Iran nuclear agreement, plus the escalation of tensions in other oil producing countries such as Saudi Arabia and Venezuela.
Goldman currently expects Brent crude to reach $82.50 a barrel in the summer, and Brent crude is currently trading at about $77. Goldman Sachs said that the United States to adopt a more stringent approach to Iran may initially lead to the decline in crude oil production in Iran about 500 thousand barrels / day, and Iran's output is 3 million 800 thousand barrels / day.
Goldman Sachs said a drop in output in Iran would boost oil prices by about 6.20 dollars per barrel. The high geopolitical risk of crude oil exacerbated the upward risk of Brant crude oil prices and consolidated our view of the volatility of crude oil prices will continue to rise. Goldman Sachs said.
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