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Oil Surges as Investors Bet Commodity Demand to Take Off

  • Goldman predicts global benchmark crude will advance into $70s
  • Trafigura sees 40 million-barrel U.S. output loss from freeze
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Trafigura's Luckock Says Freeze Brought 'Impetus' to Oil Market
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Oil surged as traders and investment banks see global supplies rapidly tightening in response to a vaccination-led recovery this summer.

Futures in London jumped 3.7% on Monday, its largest daily gain since early January, as a range of bullish calls and upward revisions to price forecasts boosted optimism over oil demand. Goldman Sachs Group Inc. sees Brent reaching $75 a barrel as consumption continues to recover faster than supply from OPEC+ and shale. Meanwhile, Morgan Stanley also boosted estimates as it sees oil heading for what may be the tightest quarter since at least 2000.