Business News Goldman Sachs predicted a sharp rise in oil prices

Goldman Sachs predicted a sharp rise in oil prices


- Advertisment -

He said he expects crude prices to rise to $80 a barrel in the fourth quarter of this year. He considered that the market underestimates the rebound in demand.

Goldman Sachs said it expects crude prices to rise to $80 a barrel in the fourth quarter of this year, arguing that the market has underestimated a pickup in demand even despite a possible resumption of Iranian supply.

“Thus, the case for higher oil prices remains intact given the large surge in demand driven by vaccines versus inelastic supply,” the bank said in a note dated Sunday.

Even “aggressively assuming” a restart of Iranian exports in July, Brent prices would still hit the $80 mark in the fourth quarter, he noted.

Oil prices fell last week after Iranian President Hassan Rouhani said the United States is ready to lift sanctions on Tehran’s oil, banking and maritime sectors.

Crude was picking up some of those losses on Monday, when a potential hurdle emerged to reviving the 2015 Iran nuclear deal that could add more oil supplies. Indirect talks between Washington and Tehran will resume this week.

Goldman Sachs said a recovery in demand in developed markets would offset the recent impact of the coronavirus on consumption and likely a slower recovery in South Asia and Latin America.

Global demand could increase by 4.6 million barrels per day through the end of the year, with most of the gains likely in the next 3 months, he said.

“Mobility is increasing rapidly in the United States and Europe, vaccines are accelerating and blockades are being lifted, and freight transport and industrial activity are also on the rise,” the note said.

The bank also expects the Organization of the Petroleum Producing Countries (OPEC) and a Russian-led alliance, a group known as OPEC +, to offset any increase in Iran’s production by halting a rise in its pumping for two months in the second half of the year. 2021.

Gina Carson
Gina Carson is a The Advertiser Mirror correspondent who covers politics, business, trend, lifestyle, entertainment and worldwide news. Gin is a talented girl of 21 years old who is fascinating with journalist work.

Latest news

Crypto colony: is Bitcoin the best option for El Salvador?

El Salvador's President Nayib Bukele activated his laser eyes on Twitter and pushed the bill to make Bitcoin a legal tender.

What are the benefits of using electronic wallets and digital money?

There are new tools for non-contact transactions for individuals and small businesses as digital wallet and money.

Does the Netherlands declare war on Bitcoin?

A Dutch government official argued that digital currency "does not fulfill any of the three functions of money and is practical for criminals."

Someone paid $28 million to travel to space with Jeff Bezos

The traveler beat about 20 rivals in an auction that began on May 19 and whose last 10 minutes were broadcast on television.
- Advertisement -

The Covid-19 pandemic has encouraged child labor in Latin America

Some 8.2 million minors, between the ages of 5 and 17, work in Latin America and the Caribbean, a region that is "far" from eradicating this child activity due to the pandemic.

A estimate that global oil demand will stabilize by the end of 2022

Global oil demand is recovering at a strong pace this June and that trend should continue in the coming quarters, according to the International Energy Agency (IEA).

Must read

- Advertisement -

You Might Also LikeRELATED
Recommended to you