Oil surges amidst Goldman Sachs forecast and easing COVID-19 curbs in China

Oil surges amidst Goldman Sachs forecast and easing COVID-19 curbs in China

Dubai: Oil resumed gains on signs Chinese demand will climb as virus restrictions are eased and Goldman Sachs Group raised its price forecasts. The West Texas Intermediate futures traded above $119 a barrel, advancing for the fourth session in five. Beijing inched closer to zero Covid cases on Monday as the capital rolled back strict virus curbs. Goldman boosted its quarterly price estimates this year and into 2023, saying that oil needed to rally further to achieve the demand destruction required for market rebalancing. Oil is up almost 60 per cent this year following a demand rebound from the pandemic and a significant tightening of the market after Russia’s attack on Ukraine. The Bloomberg Spot Commodity Index rose to a record on Monday, mostly driven by natural gas and wheat due to renewed supply fears. “Risks in the market are skewed to the upside,” said Gao Jian, an analyst with Zhaojin Futures Co.. There is optimism about the demand outlook over the northern hemisphere summer, he added. The war in Ukraine has fanned inflation, boosting the price of everything from food to fuels. The US is grappling with record pump prices at the start of its summer driving season, typically