Goldman Sachs has boosted its oil price target to $90, citing the lingering impact of Hurricane Ida on supply while demand ramps up, particularly in COVID-averse Asia.
Analysts led by Damien Courvalin lifted their year-end forecast on Brent crude-oil to $90 from $80.
Hurricane Ida should prove to be the most bullish hurricane in U.S. history, cancelling the ramp-up in OPEC+ output since July.
At the same time, global oil demand is back to converging to pre-COVID levels. Traffic congestion in China quickly recovered after a summer dip. The Delta-driven decline in global flights was smaller than the analysts initially feared.
Brent crude futures
BRN00,
rose 1% to $78.12 per barrel, and the West Texas Intermediate contract
CL.1,
added 1% to $74.79.
Natural-gas futures
NG00,
meanwhile rose over 3%. “An upgraded probability of a second La Niña event this winter will keep gas buyers scouring markets for supplies,” said analysts at BCA Research.
This post was originally published on Market Watch
