As the oil market continues to tighten significantly, Brent Crude oil prices could reach $70 to $75 a barrel in the near term, with an upside potential of exceeding the $67.50 a barrel forecast, according to Goldman Sachs.
The outlook for the oil market through the end of June 2019 is modestly bullish, Reuters quoted the investment bank as saying in a research note on Monday.
Yet, Goldman Sachs sees a possible Brent Crude jump into the $70s as fleeting, because U.S. oil exports and a possible easing of OPEC’s production cuts in the second half of the year could cap the bullish sentiment.
“The oil market will likely continue to tighten significantly this March and April,” Bloomberg quoted Goldman’s note as saying.
OPEC’s cuts and possible acceleration of Venezuela’s supply disruptions will support oil prices in the coming months, according to the bank.