Why Goldman Sachs Thinks Oil Should Be Trading Higher

Fears of weak oil demand are taking over the market, overshadowing tanker battles in the Persian Gulf, something that would have typically sent oil prices skyrocketing. However, demand may also rebound in the second half of this year, offering some upside to oil prices. Demand only grew at a 0.95 million-barrel-per-day (mb/d) rate in the first half of 2019, according to Goldman Sachs, which the investment bank admitted was 0.4 mb/d lower than its estimate at the start of the year. It’s also the weakest start to any year since 2011. “Despite…