Goldman Sachs Group Inc is doubling down on its bullish outlook for oil.
The bank still forecasts that global benchmark Brent crude will hit $67.50 a barrel next quarter, driven by healthy demand and supply curbs by OPEC and its allies such as Russia, analysts including Damien Courvalin said in a Feb. 12 report. Goldman’s estimate is around 7 per cent higher than current price levels.
Brent has struggled to sustain gains this month following its best ever start to a year on concern that booming shale output will undermine cuts by OPEC and its partners, and fears that the US-China trade war will weaken demand. Investors are worrying too much, according to Goldman. The extent of the collapse in global growth expectations is unwarranted and production losses in 2019 are already larger than predicted, the bank said.
