Goldman Sachs is now even more optimistic about oil, forecasting Brent Crude prices to reach $ 75 a barrel in the third quarter of this year, due to faster market rebalancing, lower expected stocks and traders protecting themselves against inflation. .
In a note on Sunday, quoted by Forexlive, investment bank analysts forecast Brent Crude prices hitting the $ 70 a barrel mark during the second quarter of this year, and reaching $ 75 in the third quarter. Goldman Sachs is therefore raising its previous second and third quarter forecasts by $ 10 a barrel.
“The quickest rebalancing during what was expected to be a gloomy winter day will be followed by a growing deficit this spring, as the increase in OPEC + production delays our forecast of demand recovery above consensus,” said Goldman Sachs.
“We further believe that this additional increase will be supported by the current repositioning to a reflective environment with investors turning to oil, buying a delayed real asset that benefits from a stimulus-driven recovery and has demonstrated an unparalleled ability to protect against shocks inflation, ”analysts noted.
Goldman expects lower inventories to lead to a recovery in oil prices earlier and at higher price levels.
As of Monday morning, Brent Crude prices rose 2 percent to $ 64.18 at 9:54 am ET, while WTI Crude again rose above the $ 60 per barrel mark, up 2.6 percent to $ 60.78.
Earlier this month, Goldman Sachs gave another bullish message to the oil markets, saying in a note that it expected global oil demand to recover to pre-pandemic levels of 100 million bpd by August this year.
According to Goldman, the oil market was running a deficit of 2.3 million bpd in the last quarter of 2020. With supply still tight in early 2021, the immediate future for prices is bright, despite expectations of a slow recovery in demand.
By Tsvetana Paraskova for Oilprice.com
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