Goldman Sachs raised its estimate for WTI Crude prices in 2021 to $51.38 per barrel from $48.50, expecting a gradual recovery in global oil demand and production cuts from OPEC+ and shut-ins elsewhere to support oil prices next year.
“Oil production has started to decline quickly from a combination of scaleback in activity, shut-ins and core-OPEC/Russia production cuts,” Goldman Sachs Equity Research said in a note carried by Reuters.
“Demand is also beginning to recover from a low base, led by a restarting Chinese economy and in?ecting transportation demand in developed market economies,” analysts at Goldman Sachs said in the note.
Together with raising its forecast for WTI Crude, Goldman Sachs revised up its estimate for Brent Crude prices to $55.63 a barrel from $52.50 per barrel previously expected.
At 10:30 a.m. EDT on Monday, Brent Crude was up 1.89 percent at $26.94, and WTI Crude was trading at $20.19, up by 2.22 percent on the day, as some U.S. states and countries in Europe eased lockdowns days after OPEC+ began their pact to remove 9.7 million bpd from the market in May and June. Read more