Market news
11.06.2021, 07:40

Oil rally has more room to run - Goldman Sachs

Reuters reports that 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.

"Rising vaccination rates are leading to higher mobility in the U.S. and Europe, with global demand estimated up 1.5 mb/d (million barrels per day) in the last month to 96.5 mb/d," the bank said.

Goldman expects recovery in oil demand to continue and sees global demand reaching 99 mb/d in August.

The investment bank also said slow progress in negotiations on an Iran nuclear deal could also weigh on oil supply, supporting prices.

"Recent headlines comfort us in our expectation that a potential recovery in Iran exports won't happen till the fall," the bank said.

"While there exists both OPEC+ upstream and refinery downstream excess capacity, we expect OPEC+ to fall behind the demand rebound."

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