{"id":469802,"date":"2021-02-22T09:11:04","date_gmt":"2021-02-22T07:11:04","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=469802"},"modified":"2021-02-22T09:11:04","modified_gmt":"2021-02-22T07:11:04","slug":"goldman-sees-brent-crude-oil-at-75","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/469802\/goldman-sees-brent-crude-oil-at-75\/","title":{"rendered":"Goldman sees Brent Crude oil at $75"},"content":{"rendered":"<p>Oil prices will rally sooner and higher than previously thought as the global energy demand recovery outpaces the supply response from the OPEC+ alliance, shale and Iran, according to Goldman Sachs Group Inc.<\/p>\n<p>Consumption will get back to pre-virus levels by late July, while output from major producers is likely to remain \u201chighly inelastic\u201d to the rising prices, the bank said in a note. Goldman raised its Brent forecasts by $10 a barrel, to $70 next quarter and $75 in the following three months.<\/p>\n<p>\u201cThis 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,\u201d bank analysts including Damien Courvalin said in the note.<\/p>\n<p>Oil\u2019s rebound to levels last seen before Covid-19 wreaked havoc on the global economy has been driven by Saudi Arabia\u2019s unilateral output cuts together with the improving demand outlook. The rally has also been supported by investors using crude to position for a reflationary environment, Goldman said. Brent oil traded above $63 a barrel on Monday and is up around 22% this year.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/02\/Oil-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-469804\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/02\/Oil-1.jpg\" alt=\"\" width=\"814\" height=\"457\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/02\/Oil-1.jpg 814w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/02\/Oil-1-300x168.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/02\/Oil-1-768x431.jpg 768w\" sizes=\"auto, (max-width: 814px) 100vw, 814px\" \/><\/a><\/p>\n<p>Supply will keep lagging behind demand for several reasons, the bank said:<\/p>\n<ul>\n<li>OPEC+ will fall behind the market rebalancing, especially as the pace of global drawdowns of stockpiles has accelerated<\/li>\n<li>There are no signs of more activity from most non-OPEC+ producers outside of North America, creating a risk supply will fall 900,000 barrels a day short of the bank\u2019s estimates in the coming year<\/li>\n<li>The US earnings season confirms that big explorers and producers, the key drivers of US shale output, remain focused on returning cash to shareholders<\/li>\n<li>Indications from the US government suggest Iranian output likely won\u2019t increase in the short term<\/li>\n<\/ul>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/trending\/469004\/brent-oil-passes-65-a-barrel\/\" target=\"_blank\" rel=\"noopener\">Brent oil passes $65 a barrel\u00a0<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil prices will rally sooner and higher than previously thought as the global energy demand recovery outpaces the supply response from the OPEC+ alliance, shale and Iran, according to Goldman Sachs Group Inc.<\/p>\n","protected":false},"author":59,"featured_media":274449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[6603,26],"class_list":["post-469802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-goldman","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/469802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=469802"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/469802\/revisions"}],"predecessor-version":[{"id":469806,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/469802\/revisions\/469806"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/274449"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=469802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=469802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=469802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}