Oil News

Goldman Sachs is maintaining its forecast for crude to reach $85 a barrel by the end of this year and $95 next year as it expects the market to shift into a “global deficit” in coming months.

Goldman Sachs keeps its forecast for crude at $85 by the end of the year

while production outside the Organization of Petroleum Exporting Countries is set to decline

Goldman Sachs is maintaining its forecast for crude to reach $85 a barrel by the end of this year and $95 next year as it expects the market to shift into a “global deficit” in coming months. “Strong activity” in China’s petrochemical and metals sectors is likely to provide support to global oil demand, while production outside the Organization of Petroleum Exporting Countries is set to decline, generating “further price and returns upside,” Goldman’s analysts led by Alison Nathan said in a report last week.“We believe that recent performance is just the beginning of strong expected commodity returns over the coming 12-24 months,” the report said. “Our economist’s outlook for the Chinese economy remains constructive, which supports our view that demand for these industrial-related petroleum products will likely remain strong, providing support to global oil demand.” Crude oil is currently trading at $79.15 as of 21:30pm, GMT with a bullish trend. Crude’s Pool-position is 84% Long, meaning that most Finotec clients are buying the commodity.

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