Goldman Sachs Group Inc. Brent continued to rise as it predicted oil prices would rise above $ 70 a barrel in the coming months.
Oil prices, which fell slightly as production in the United States gradually returned to normal after the interruption of extreme cold, rose above $ 63 a barrel in London futures.
The recovery expected this year after the contraction in demand from the Covid-19 outbreak pushed prices to their highest level in more than a year last Wednesday. Goldman announced that the recovery would accelerate as consumer demand outstrips OPEC + and shale gas supplies. Crude oil stored at sea fell to an 11-month low last week, another sign of reduced supply.
Meanwhile, Saudi Arabia and Russia are heading towards the OPEC + meeting next week, with differing opinions on whether to add more supply to the market in April. According to the delegates, the Kingdom wants to keep production stable, but Moscow wants to increase production.
“The OPEC + decision is seen as a major risk event for the oil market,” said Stephen Brennock, analyst at PVM Oil Associates. Still, prices are expected to remain in an uptrend, ”he says.
Crude oil has gained more than 20% this year after Saudi Arabia’s commitment to deepen production cuts, the spike started by Covid-19 vaccination. Brent’s current time spread was bullish in a hindsight structure, giving a tighter market signal and helping to relax global stocks formed during the pandemic.
Brent for the April settlement rose 0.5% to $ 63.19 a barrel at 9:56 am London time.
For the March delivery that ended Monday, West Texas Intermediate was up 0.3% to $ 59.42.
The most active April contract was up 0.4% to $ 59.47.
Goldman estimates that Brent will hit $ 70 a barrel in the second quarter and $ 75 a barrel in the next three months. This is $ 10 above previous estimates. The bank said that consumption will return to pre-virus levels in late July and that the output of major producers is inelastic to rising prices.
Meanwhile, Iran and the United States bicker over how to revive a nuclear deal The Iran issue is one of the tough issues facing US President Biden, even though nuclear researchers have temporarily persuaded Iran to allow broader monitoring. . This weekend, Tehran demanded that the US administration join the agreement and lift the crippling sanctions against the Iranian economy before talks start again.
After the post-Goldman report, the price of Brent oil is rising again first on ParaAnaliz.