Mumbai: Global financial major Goldman Sachs expects Brent crude oil prices to reach $110-per-barrel by next year, a 30% jump from the current levels of $85/bbl. Oil analysts at Goldman Sachs say that the global demand-supply mismatch, with the current demand almost near the pre-Covid levels, is expected to push up crude prices over the next year.
A commensurate 30% rise in petro product prices in India would mean petrol prices could be near the Rs 150-per-litre mark and diesel Rs 140/ltr. On Tuesday, the price of petrol in the city was Rs 113.4/ltr while diesel was at Rs 104.4/ltr.
“We estimate that global oil demand has surpassed 99 million barrels per day (mb/d) and will shortly hit its pre-Covid level of 100 mb/d as Asia rebounds after the Delta wave,” Goldman Sachs analysts said in a recent note. “In addition, we estimate that gas-to-oil switching may be contributing at least 1 mb/d to oil demand, with current gas forwards incentivising this through winter. While not our base-case, such persistence would pose upside risk to our $90/bbl year-end Brent price forecast.”
