Goldman Sachs is now even more bullish on oil, expecting Brent crude prices to hit $ 75 a barrel in the third quarter of this year, due to a faster market rebalancing, lower expected inventories and traders protecting themselves. against inflation.
In a Sunday note, cited by Forexlive, investment bank analysts forecast that Brent crude prices will hit $ 70 a barrel during the second quarter of this year and $ 75 in the third quarter. Goldman Sachs is raising its previous second and third quarter forecast by $ 10 a barrel.
“A faster rebalancing during what were expected to be the dark days of winter will be followed by a widening deficit this spring, as increased OPEC + production lags behind our forecast for demand recovery. above consensus, “Goldman Sachs said.
“We further believe that this further rally will be underpinned by the current repositioning for a reflationary environment in which investors turn to oil and buy a lagging real asset that benefits from a stimulus-driven recovery and has demonstrated an unmatched ability to hedge against shocks. inflationary shocks. ”Analysts noted.
Goldman expects lower inventories to lead to an earlier oil price rally and higher price levels.
On Monday morning, Brent crude prices rose 2 percent to $ 64.18 as of 9:54 a.m. ET, while WTI crude rose again above $ 60 a barrel, having risen 2 , 6 percent at $ 60.78.
Earlier this month, Goldman Sachs had another upbeat message for oil markets, saying in a note that it expected global oil demand to rebound to pre-pandemic levels of 100 million bpd by August this year.
According to Goldman, the oil market posted a deficit of 2.3 million bpd in the final quarter of 2020. With supply still tight in early 2021, the immediate future for prices is bright despite expectations of a slow demand recovery.
By Tsvetana Paraskova for Oil.eu
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