“We are increasing our tight oil forecast and now Brent prices are expected to hit $ 65 / barrel this summer instead of year-end“Goldman Sachs analysts noted in their latest commodities report.
Key Comments:
“With the implementation of vaccines around the world, the probability of a rapidly narrowing market from the second quarter of 2021 is increasing as the rebound in demand emphasizes the ability of producers to restart production ”.
“Further, OPEC + production level in March will remain close to recent lows just as world demand begins to rebound sharply driven by warmer weather and increased vaccines. “
“This points to the group might have a hard time increasing production fast enough, with our balance currently reflecting a deficit of 1.3 million barrels per day in April-July despite OPEC + increasing production by 4 million barrels per day, a historically high order. “
“We continue to recommend a bullish position on Brent for December 2021 (currently trading at $ 53 versus our forecast of $ 65).”
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