Goldman Sachs analyst says oil bulls misjudge the extent of the oil price decline and underestimate the flexibility of the system.

Daan Struyven, co-head of global commodities research at Goldman Sachs, said that oil bullish analysts have misjudged the extent of the decline in oil prices after the easing of tensions in Iran. The United States and Iran reached a temporary ceasefire agreement in April and began negotiations aimed at officially ending the war. Struyven said that the market "underestimated the systemic flexibility."