Goldman Sachs forecasts oil price to 140 USD/barrel

Gasoline and oil prices need to move higher this summer to encourage more oil production and discourage consumers from consuming fuel, a Goldman Sachs report said.

This American bank forecast oil prices Brent crude futures in London will average $140/barrel in the July-September period, from a previous forecast of $125/bbl. The price of Brent oil is currently hovering around the 120 USD/barrel mark.

Besides, Goldman Sachs believes that the retail price of gasoline in the summer of this year needs to increase to a level consistent with the oil price of $ 160 per barrel to be able to pull down demand.

On June 8, the United Arab Emirates Energy Minister said that oil prices could move higher because Chinese demand is likely to recover significantly, amid efforts to increase production by the Organization of the United Arab Emirates. Organization of the Petroleum Exporting Countries (OPEC) and its partners (OPEC+) have not been able to bring about quick results.

In the US, the national average retail price of gasoline set a new record on June 7 when it increased to $4.92 per gallon, according to data from AAA. Gasoline prices in this country have increased by 0.3 USD/gallon within a week and by 0.62 USD/gallon within the past 1 month.

13 states in the US and the capital Washington DC have seen gasoline prices of 5 USD/gallon or more. In a number of other states, gasoline prices are also close to this threshold.

According to a report by Goldman Sachs, Brent oil price will average $135/barrel in the second half of this year and the first half of 2023. This figure is up $10/barrel compared to Goldman Sachs’ previous forecast.

“We believe that oil prices need to move higher to normalize the very low levels of global oil inventories, as well as OPEC’s oil reserves and global refining capacity.” , the report writes.

In March, the price of Brent oil at one point exceeded 139 USD/barrel, the highest in 14 years. However, that price level did not last long. This time, Goldman Sachs forecasts a more sustainable oil price rally, with Brent oil prices averaging $140 per barrel for the whole of the third quarter.

Europe “holds the reins” on gasoline prices

VTV.vn – Gasoline prices have simultaneously increased over the past week in many European countries. How to keep the price of petrol in check is a prominent topic in the European press.

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