Goldman Sachs Commodities Research has raised its forecast for Brent for the second and third quarters by $ 5 per barrel to $ 75 and $ 80 per barrel, Profinance reported.
The reason for the revision of the forecast was the statement of the OPEC + countries to extend the production cut for another month, despite the surge in oil prices.
The bank expects Brent crude oil prices to reach $ 75 per barrel in the second quarter and $ 80 per barrel in the third quarter of 2021.
The Organization of the Petroleum Exporting Countries and its allies (OPEC +) on Thursday agreed to extend the cut in oil production until April, deciding that the recovery in demand after the coronavirus pandemic is still fragile.
The OPEC + supply strategy is working because of its surprise and surprise, Goldman Sachs said. (Also Read: Bloomberg BTC Price Forecast: Bitcoin at $ 170K? Crypto Price Prediction 2021)
“We believe that OPEC + is adhering to a strategy of a tight oil market, and our updated forecast of the balance of supply and demand indicates that OECD stocks by the end of this year will fall to their lowest level since 2014,” the bank said.
The bank cut its forecast for OPEC + production by 0.9 million barrels per day over the next six months and said that the supply of shale oil, Iran and non-OPEC countries is likely to remain highly inelastic relative to prices until the second half of 2021. , which will allow OPEC + to quickly balance the oil market.
Consumption is recovering The International Energy Agency expects global oil demand to grow by 5.4 million barrels per day in 2021, reaching 96.4 million barrels per day.
Thus, it is planned to restore about 60% of the volume lost during the pandemic.
Demand will pick up in the second half of this year as more vaccines are introduced, the group said last month.