Oil rally has more room to run, Brent expected to hit $80: Goldman

Oil rally has more room to run, Brent expected to hit $80: Goldman

BENGALURU: US investment bank Goldman Sachs expects Brent crude 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, fueled by expectations of stronger demand. Brent futures were trading at $72.21 a barrel on Friday, while US West Texas Intermediate (WTI) crude was around $70 a barrel. "Rising vaccination rates are leading to higher mobility in the US and Europe, with global demand estimated up 1.5 million barrels per day (bpd) in the last month to 96.5 million bpd,“ the bank said in a note released late on Thursday. Goldman, which has longstanding commodity sector expertise, expects recovery in oil demand to continue and sees global demand reaching 99 million bpd in August. The investment bank also said slow progress in negotiations on an Iran nuclear deal could also weigh on oil supply, supporting prices. Iran and global powers have been negotiating since April to lift sanctions on Tehran, which have hit its economy hard by cutting its vital oil exports. US Secretary of State Antony