Goldman Sachs’ analysts, including global head of commodities Jeff Currie, said in a note published late-Thursday, raised its 2018 Oil Price Forecast for Brent.
2 February, GKFX – According to CNBC, the investment bank now sees Brent, the international benchmark for oil, averaging $75 a barrel over the next three months, up from its previous target of $62. Goldman also raised its six and 12-month forecasts to $82.50 and $75, respectively.
“Importantly, all the pillars of the New Oil Order remain intact in our view so this is a cyclical call.”
“The New Oil Order is on hiatus with its next point of reckoning likely a few years away.”
Goldman Sachs 2018 Oil Price Forecast
Goldman says it believes the rebalancing of the oversupplied oil market has actually already occurred, six months earlier than it expected.
The bank credits “stellar” growth in oil demand, OPEC members sticking to the output deal and the downward spiral of crude output in Venezuela, which is mired in economic crisis.
Many of these drivers will continue into 2018, and the world’s growing appetite for oil now looks even more ravenous than anticipated, Goldman says.
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