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Goldman Sees Brent Oil at $75 as Supply Response Trails Demand

  • Bank raises Brent forecast to $70 a barrel in 2Q and $75 in 3Q
  • Major producers to stay “highly inelastic” to rising prices
Oil Refinery Views As Oil Price Rides Virus Rollercoaster
Photographer: Andrey Rudakov/Bloomberg
Updated on

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.

Consumption will get back to pre-virus levels by late July, while output from major producers is likely to remain “highly inelastic” 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.