Goldman Sachs is now even stronger in terms of oil, expecting Brent Crude prices to hit $ 75 a barrel in the third quarter of this year amid faster market rebalancing, lower expected stocks and traders who it covers against inflation.
In a note on Sunday, quoted by Forexlive, investment bank analysts predict that Brent Crude prices will reach $ 70 a barrel in the second quarter of this year and will reach $ 75 in the third quarter. Goldman Sachs thus raises its previous Q2 and Q3 forecasts by 10 USD per barrel.
“Faster rebalancing in what was expected to be the dark days of winter will be followed by a growing deficit this spring, as growth in OPEC + production remains with our demand recovery forecasts over consensus,” Goldman Sachs said.
“We also believe that this additional rally will be supported by the current repositioning for a reflective environment, with investors resorting to oil, buying a remaining real asset that benefits from a stimulus-based recovery and has demonstrated an unparalleled ability to cover against inflationary shocks, ”analysts noted.
Goldman expects lower stocks to lead to an earlier rise in oil prices and higher price levels.
On Monday morning, prices for Brent Crude rose 2% to $ 64.18 at 9:54 a.m. ET, while WTI Crude again surpassed the $ 60 a barrel mark, rising 2.6% to 60, 78 USD.
Earlier this month, Goldman Sachs had another key message for oil markets, saying in a note that global oil demand is expected to return to pre-pandemic levels of 100 million bpd by August this year. .
According to Goldman, the oil market was in 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 for a slow recovery in demand .
By Tsvetana Paraskova for Oilprice.com
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