Goldman Sachs warns of competing forces creating two-sided risks for oil markets as demand weakness clashes with Middle East supply disruptions from the Iran conflict. The bank's analysts see conflicting pressures that could push prices either direction.

April oil sales data from China and Western Europe indicate approximately 2 million barrels daily downside risk to the bank's already low demand estimates. This represents a significant demand-side pressure that could weigh on crude markets.

Meanwhile, supply losses from the Iran war create upward price pressure. The bank estimates this adds about $10 per barrel to their $90 forecast for Brent crude in Q4, creating a delicate balance between supply and demand factors.