Goldman Sachs raised its estimate of WTI crude oil prices in 2021 to $ 51.38 per barrel from $ 48.50, expecting a gradual recovery in global demand for oil and production cuts in the OPEC + and closings elsewhere to support oil prices next year.
“Oil production has started to decline rapidly due to a combination of downturn, closings and reductions in core OPEC / Russia production,” Goldman Sachs Equity Research said in a published note. by Reuters.
“Demand is also starting to recover from a low base, driven by the rebound in the Chinese economy and demand for transportation in developed market economies,” Goldman Sachs analysts said in the note.
In addition to increasing its forecast for WTI crude, Goldman Sachs has revised up its estimate of Brent crude oil prices to $ 55.63 per barrel from the previously forecasted $ 52.50 per barrel.
At 10:30 am EDT Monday, Brent Crude rose 1.89% to $ 26.94, and WTI Crude was trading at $ 20.19, up 2.22% on the day, some US states and countries Europeans having relaxed the locks a few days after the start of OPEC +. withdraw 9.7 million bpd from the market in May and June.
Even though oil producers have finally agreed to cut production by almost 10 million bpd, the deal will fail to support oil prices in the weeks to come, as the deal, while historic, does not meet the destruction and huge expectations of demand, said Goldman Sachs after the OPEC + was concluded.
After WTI crude futures fell to -37 $ on April 20, the day before the May contract expired, Jeffrey Currie, raw materials manager for Goldman, said that US oil prices are picking up was still weeks away.
Although Goldman Sachs does not expect oil prices to jump too much in the coming weeks, he remains fairly optimistic about oil demand in 2021 and that major oil producers will cut production – OPEC + because of their collective agreement, as well as in the United States and Canada. , for example, due to market conditions.
By Tsvetana Paraskova for Oilprice.com
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