Goldman Sachs foresees surge in oil prices
A wave of euphoria swept over the global oil market again. Oil prices are expected to skyrocket in the near future. One of such optimistic forecasts was prepared by experts at Goldman Sachs, who foresaw a jump to $80 per barrel as early as the end of the next year.
The global economic recovery amid the availability of coronavirus vaccines could be the main driver of higher oil prices. At the same time, economic return to normal conditions could become a decisive factor. If the global economy spreads its wings, the removal of sanctions from Iran will hardly influence oil prices.
Goldman Sachs emphasizes that “the market has underestimated a rebound in demand even with a possible resumption in Iranian supply.” Notably, Iranian oil exporters may return to the pre-crisis levels of oil supply, that is 4 million barrels a day, just in several months.
It is highly possible that the expected surge in oil prices will be the last one in history. Most analysts suppose that the era of oil and gas may end soon. The same thought was expressed by Russian billionaire Oleg Deripaska. He reminded that earlier, the International Energy Agency (IEA) warned market players not to invest in new oil and gas projects. He said that it was good that key organizations stopped playing unconsciously and started to talk openly about changes in the world. Now, the global community should create real mechanisms that will prohibit some countries from ruining the planet, defiantly violating international laws.