Goldman Sachs analysts say oil bulls misjudged the drop in oil prices and underestimated system flexibility

Multiple factors have led to incorrect predictions about oil prices remaining high. These factors include crude oil inventories in storage facilities, land pipelines that allow Middle Eastern countries such as Saudi Arabia to partially bypass the Strait of Hormuz, and the scale of crude supply outside the region. "We estimate that as of May, global crude oil supply has increased by 3 million barrels year-on-year, with particularly strong growth in places like Brazil and the United States," said Struyven. Last week, his Goldman Sachs team lowered their Brent crude price forecast for the fourth quarter from $90 per barrel to $80 per barrel. (Bloomberg TV)