Brent crude to hit $75 as demand recovery outstrips supply: Goldman Sachs

SourceArab News
SectorOil & Gas
CountryMiddle east

DUBAI: The price of a barrel of Brent crude is forecast to reach $75 in the third quarter of this year, according to energy analysts at US investment bank Goldman Sachs. The projection comes in the wake of a sustained rally in global oil prices as continued restrictions on supply – led by Saudi Arabia after its surprise 1 million barrels per day (bpd) voluntary cut in February – met increased demand as coronavirus disease (COVID-19) vaccines being rolled out around the world increased hopes of an economic recovery. “We now forecast that oil prices will rally sooner and higher, driven by lower expected inventories and higher marginal costs – at least in the short run – to restart upstream activity,” a new research note from Goldman Sachs’ Damien Courvalin said. The effect of the recent freezing weather in Texas, which has cut some 2 million bpd from American output, will be counterbalanced by a decline in economic activity in the more...