Goldman: Oil Could Hit $85 In The Fourth Quarter

Cat:

Related stories

A colder winter and soaring natural gas prices globally could lead to higher-than-expected oil prices at the end of this year, with the potential for oil hitting $85 per barrel in the fourth quarter, Goldman Sachs says.

Goldman, which has a price forecast of $80 a barrel oil for the last quarter of 2021, believes that the natural gas crunch combined with a colder-than-usual winter in Europe and Asia could pose an upside risk of $5 a barrel to its Q4 price projection, the bank’s analysts said in a note on Sunday carried by Reuters.

“The tightness in global gas supplies creates a clear and potentially meaningful bullish catalyst for the oil market this winter, larger than the downside risk to global oil demand from another Delta-like COVID wave,” the analysts at Goldman Sachs wrote.

According to the investment bank, oil demand could jump by 900,000 barrels per day (bpd) if the coming winter is colder than usual in the northern hemisphere.

Europe’s tight gas market, low wind speeds, abnormally low gas inventories, and record carbon prices have combined in recent weeks to send benchmark gas prices on the continent and power prices in the largest economies to record highs. Record European natural gas prices are sending Asian spot prices of liquefied natural gas (LNG) to record levels for this time of the year, too.

Last week, Bank of America Global Research said that oil prices could hit $100 per barrel over the next six months if we have a colder-than-usual winter, which could be the most important driver of global energy markets in the coming months. BofA sees upside for oil prices amid modest market deficits in the next few months. It also sees potential for oil to hit $100 a barrel earlier than its mid-2022 call from June if the winter is colder than normal.

NB: Tsvetana Paraskova wrote this article  for Oilprice.com

Tsvetana Paraskova
Tsvetana Paraskova
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
How I Cooked Up Villa Rat Invasion Story to Divert Attention from Buhari’s Health Status- Garba Shehu RevealsAfter Kyari's $18 Billion Repairs Flop, NNPCL Considers Selling Port Harcourt, Warri, Kaduna RefineriesPresident's Powers: Shettima's Account Has No Link to Tinubu’s Suspension of Fubara, Says VP's AideDrama as Ex-SGF Lawal Labels Lagos-Calabar Coastal Highway's ₦15 Trillion Project a "Scam"[VIDEO] Nigerians React as Shettima Indirectly Takes Swipe at Tinubu Over Rivers State Emergency RuleOil Prices Set to End the Week Flat Amid Conflicting Signals[PHOTOS] Peter Obi Triggers Massive Reactions on Social Media Ahead 2027Massive Reactions As Super Eagles Slide to 44th in Latest FIFA World RankingsShake-Up; Senate Explains Why Natasha Was Removed as Diaspora Committee ChairRanked: The World’s Biggest Tourism Economies2027: INEC Under Siege With Fresh 129 Parties Requests, Set to Launch Portal For ApplicationsWhy Diplomatic Tensions are Rising Between Nigeria, US-- Tuggar Explains$18bn Maintenance: Dangote Warns FG, Reveals Why NNPCL Refineries are Beyond RepairEFCC Boss Raises Alarm: Politicians Using Crypto Wallets to Hide Huge Stolen FundsEdo Guber: Ighodalo Condemns Supreme Court Judgement, Says it's "Betrayal of Democracy"
X whatsapp