Oil Prices Could Rise $10 for Each Month of Supply Normalization Delay

In a discussion on oil prices, Daan Struyven, co-head of global commodities research at Goldman Sachs, attributed the recent increase to strategic petroleum reserve drawdowns and tightening supply-demand dynamics. He warned that continued inventory draws, particularly in the diesel market, could lead to export restrictions, similar to those imposed by other countries. Struyven advised clients to consider hedging strategies to manage price risks. The conversation also touched on shifts in refinery production, with US refineries increasing their share of jet fuel production due to tight supply and high prices.