Oil rally has more room to run, Brent expected to hit $80/bbl – Goldman By Reuters – Investing.com

SourceInvesting.com
SectorOil & Gas
CountryGulf

© Reuters. FILE PHOTO: A sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019.

Picture taken November 22, 2019. REUTERS/Angus Mordant/File Photo

(Reuters) – U.S. investment bank Goldman Sachs (NYSE:) expects prices to reach $80 per barrel this summer, betting that a recent oil market rally will continue as vaccination rollouts boost global economic activity and demand for the commodity.

Brent prices hit $72.93 per barrel this week, their highest level in over two years, fuelled by expectations of stronger demand.

Brent futures were trading at $72.21 a barrel on Friday, while U.S. West Texas Intermediate (WTI) crude was around $70 a barrel. [O/R]

“Rising vaccination rates are leading to higher mobility in the U.S. and Europe, with global demand estimated up 1.5 mb/d (million barrels per day) in the last month to 96.5 mb/d,” the bank said in a note released late on Thursday.

Goldman, which has longstanding...read more...