Oil price: Goldman Sachs says it is ready for $90 per barrel

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Goldman Sachs raised its already optimistic forecast on Sunday, expecting Brent crude oil to reach US$90 per barrel by the end of the year. This is higher than the previous $80.

The Wall Street bank expects US crude oil prices to reach US$87 per barrel, higher than the previous US$77.

“Although we have been bullish on oil for a long time,” Goldman Sachs strategists wrote in a report to clients, “the current global Oil supply and demand gap It’s bigger than we expected. “

The company stated that global demand for the Delta model is recovering “even faster than our consensus forecast above”, and global supply is “below our consensus forecast.”

BP shuts down some gas stations, the British line up to refuel
in other words, High oil prices It can even become higher. This indicates that gasoline prices may remain high.
According to statistics, the national average price is 3.19 US dollars per gallon AAAThis is higher than $3.15 a month ago and $2.19 this time last year.

The world benchmark Brent crude oil rose another 1.5% on Monday to $79.25 per barrel. This makes Brent crude oil expected to hit its highest closing price since October 2018.

US crude oil rose 2% on Monday to close at $75.45 per barrel. This is the highest closing price since October 3, 2018. This is the first time since mid-July that oil prices have closed above US$75 per barrel.

The latest earnings added to the significant recovery after the Covid outbreak, when US crude oil fell below zero for the first time in history. Oil fell to the bottom of minus US$40 per barrel in April 2020, about US$115 lower than the current level.

The pandemic has forced American Petroleum Corporation and OPEC to significantly reduce production – and most of these supplies are still suspended.

Goldman Sachs said that the current supply and demand deficit “in our view, will not be reversed in the next few months, because its scale will overwhelm OPEC+’s willingness and ability to expand.”

this The White House calls on OPEC+ To speed up the increase in production, this call has so far not been ignored by the producer alliance led by Saudi Arabia and Russia.

At the same time, Goldman Sachs pointed out that the return of shale oil in the United States “has just begun.”

U.S. oil supplies were affected by Hurricane Ida, which caused production in the Gulf of Mexico to cease production for a long time. Goldman Sachs stated that the storm “should prove to be the most optimistic hurricane in American history.”

Goldman Sachs said that this will lay the foundation for oil inventories to reach their lowest level since 2013.

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