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Goldman Says Oil Needs to Rally Further to Solve Market Deficit

  • Bank raises Brent price outlook by $10 for 2H, 1H 2023
  • Global crude benchmark has gained about 55% this year

Oil prices are likely to extend gains as global crude stockpiles need to be rebuilt in the face of rebounding Chinese demand and reduced production from Russia, according to Goldman Sachs Group Inc.

Brent crude will need to average $135 a barrel in the 12 months from July, up $10 from the bank’s previous forecast, for global inventories to normalize by late 2023, analysts including Damien Courvalin and Jeffrey Currie said in a note dated June 6. The global benchmark was trading at about $120 on Tuesday, and has risen more than 50% this year.