Goldman Sachs Increases Brent Price Forecast to $75/bbl on Lower Expected Inventories 

Goldman Sachs Group Inc. revised up Brent oil forecast this year to $70 a barrel in 2Q and $75 in 3Q as energy demand worldwide recovery outpaces the inventories, resulting in oil price to rally sooner and higher than previously estimated.   


Citing lower inventories, coupled with higher marginal costs to restart upstream activity and speculative inflows are the significant catalysts for prices to ramp up


Also, foresaw the consumption to return to pre-pandemic levels by late July, a faster rebalancing than has been expected during the winter,  whereas output from OPEC+ producers is likely to remain “highly inelastic” to the rising prices. 


“This faster re-balancing during what was expected to be the dark days of winter will be followed by a widening deficit this spring as the ramp-up in OPEC+ production lags our above-consensus demand recovery forecast,” said Goldman Sachs.

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