Goldman Sachs improves oil price forecast

US, WASHINGTON (ORDO NEWS) — Goldman Sachs, one of the largest investment banks in the world and Wall Street, has improved its forecast for rising oil prices in the markets.

The decline in oil production launched by the countries on May 1 and the recovery of economic activity in the world after the shock of the pandemic will lead to the restoration of oil prices in 2021 to the pre-crisis level, Goldman Sachs predicts in a study citing Reuters.

The price forecast for the European Brent crude standard was improved by 2021 to $ 55.63 from $ 52.50 earlier, the American standard – West Texas WTI grade – to $ 51.38 from $ 48.50 a barrel earlier.

“Oil production began to decline rapidly due to the reduction in the scale of operations, the closure of enterprises and the reduction in production under the OPEC + deal. Demand also begins to recover after the restart of the Chinese economy and growth in demand for transportation in countries with developed market economies,” the investment bank notes.

Oil prices have already risen 1.7 times on Brent and more than 2 times on WTI since the historic deal on April 12th.

The OPEC + countries held an emergency meeting on April 12, at which they pledged to limit oil production by May 9.7 million barrels per day. Countries that have not previously participated in the deal have also acceded to the agreement – in this case, production will be reduced by 15-20 million barrels per day. OPEC has already announced the success of the transaction – all those who previously assumed the obligations of the agreement reduce production.

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