Goldman Sachs predicts that oil prices may rise to $ 65 a barrel by next July due to a scarcity of crude supplies in the market and a slow recovery in demand.
According to ArabiaNet, the bank said in a note on Sunday that data indicate a deficit of 2.3 million barrels per day in the fourth quarter of 2020 due to high demand and a decline in supplies from producers outside the OPCO group.
The bank expects a deficit of 900 thousand barrels per day in the first half of 2021, which is higher than its previous forecast of 500 thousand barrels per day.
The bank said that this could help lift Brent crude to $ 65 a barrel by July, as the sector’s low investment in supplies directs prospects to rise in 2022. Brent surpassed $ 55 on Monday.
The bank expected demand to rise by 5.3 million barrels per day in the six months to July, down from 6.8 million barrels per day in its previous forecast.
Saudi Arabia pledged to implement additional voluntary cuts to oil production in February and March, while most members of the Organization of the Petroleum Exporting Countries (OPEC) and allies within the OPEC group agreed to keep production steady.
