Goldman Sachs Group Inc., an American multinational investment bank and financial services firm, raised its Brent forecasts by $10 a barrel, to $70 next quarter and $75 in the following three months, Bloomberg news agency reported on Sunday with reference to the bank.
Oil prices will rally sooner and higher than previously thought as the global energy demand recovery outpaces the supply response from the OPEC+ alliance, shale and Iran, according to the Goldman.
Supply will keep lagging behind demand for several reasons, the bank said. OPEC+ will fall behind the market rebalancing, especially as the pace of global drawdowns of stockpiles has accelerated.
There are no signs of more activity from most non-OPEC+ producers outside of North America, creating a risk supply will fall 900,000 barrels a day short of the bank’s estimates in the coming year.