Goldman Sachs is now even more bullish on oil, and expects Brent crude oil prices to reach $ 75 a barrel during the third quarter of this year, thanks to a faster rebalancing of the market, lower expected inventories and inflation hedging operators.
In a note on Sunday, quoted by Forexlive, investment bank analysts forecast Brent Crude prices to reach $ 70 a barrel during the second quarter of this year and reach $ 75 in the third quarter. Goldman Sachs thus raises previous Q2 and Q3 forecasts by $ 10 per barrel.
“A faster rebalancing during what was expected to be the dark days of winter will be followed by a growing deficit this spring, as the rise in OPEC + production is delayed from our forecast demand recovery above consensus, ”Goldman Sachs said.
“In addition, we believe that this additional rally will be supported in the current repositioning for a reflective environment with investors who will resort to oil, buying a backward real asset that benefits from a stimulus-driven recovery and has demonstrated a capacity unparalleled to protect themselves from inflation shocks, ”analysts noted.
Goldman expects lower inventories to lead to a rise in oil prices sooner and higher price levels.
On Monday morning, Brent Crude prices rose 2% to $ 64.18 at 9:54 am ET, while WTI Crude again topped $ 60 a barrel, rising 2.6% to 60 , $ 78.
Earlier this month, Goldman Sachs received another bullish message for oil markets, saying in a note that it expected global oil demand to recover to pre-pandemic levels of 100 million bpd in August. this year.
According to Goldman, the oil market had a deficit of 2.3 million bpd in the last quarter of 2020. With supply still tight in early 2021, the immediate future of prices is bright despite expectations of a slow recovery of demand.
By Tsvetana Paraskova for Oilprice.com
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