Goldman Sachs changes its forecast for oil prices
18:42
The price of Brent crude oil may reach $135 per barrel in the second half of the year, Goldman Sachs bank predicts. This is $10 more than analysts predicted in their previous forecast. The biggest problem, which can influence the growth of oil prices, is the growing deficit of this raw material on world markets.
Goldman Sachs analysts enumerate several reasons for changing the oil price forecast. Firstly, a record sale of the Strategic Petroleum Reserve, i.e. emergency oil stocks belonging to the United States, was recorded. This means that U.S. oil inventories have declined.
The second major factor is the changing economic situation in China. Covid restrictions in that country have led the oil market to its first surplus since June 2020. However, Beijing's low number of new Covid-19 cases allowed the capital on Monday to back away from the tight restrictions. As a result, Chinese demand will grow and oil surpluses will run out.
The future oil price will also be influenced by the situation in Russia, according to the report. In April and May, there were relatively small declines in oil exports from Russia, but the country will reduce production. Russian oil production will fall by 0.5 million barrels per day after the European Union embargo.
