An American bank expects that OPEC + will not respond to Washington: a barrel of oil reaches $ 80 at the end of the year

An American bank expects that OPEC + will not respond to Washington: a barrel of oil reaches $ 80 at the end of the year

2021-08-13 01:56

An American bank expects that OPEC + will not respond to Washington - a barrel of oil reaches 80 at the end of the yearShafaq News/ The US investment bank Goldman Sachs said the US’s recent call for OPEC + to boost oil production is unlikely to lead to increased production in the short term given the threat of demand from the delta strain of the Corona virus.

On Wednesday, the administration of US President Joe Biden urged the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC +, to increase production to counter rising gasoline prices, which they see as a threat to global economic recovery.

“We see neither the recent White House statement threatening the current market deficit nor the pace of rebalancing in the second half of 21,” Goldman Sachs said in a note dated Thursday, maintaining its year-end forecast for Brent crude at $80 a barrel.

Brent crude futures fell 0.4 percent to $71 a barrel on Friday, while US West Texas Intermediate crude traded around $68.76.

However, Goldman noted that an additional increase in OPEC+ production by the end of the year is required to counteract recent supply disappointments globally, and expects that OPEC+ spare capacity will be fully normalized by the spring of 2022.

Last month, OPEC+ agreed to increase oil supply from August to cool prices that had climbed to two-and-a-half-year highs. Read more

The US bank recently lowered its forecast for oil demand in China, citing growing concerns about the spread of the delta variable.

“In the short term, Delta’s threat to oil demand has already weakened the global balance, with the deficit narrowing from 2.3 to 1.0 million barrels per day,” the bank said.

“Looking beyond delta headwinds, we expect the demand recovery to continue along with higher vaccination rates.”

shafaq.com