Why Oil Prices Are Surging Despite Recovering Supply

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Middle East crude flows have rebounded, but precautionary buying and portfolio hedging are among the factors keeping prices elevated, says Daan Struyven, co-head of Global Commodities Research and head of Oil Research, on the Goldman Sachs Exchanges podcast. Key takeaways: Precautionary physical buying: Physical buyers are bidding up available crude amid growing downside risks to supply. Portfolio hedging: Bond and equity prices are unusually sensitive to oil prices, prompting institutional…