Goldman Sachs “Even though the corona spreads, crude oil prices will rise more than 21% this year”

Input 2021.01.07 11:00

Goldman Sachs predicted that even if oil demand decreases in the short term due to the spread of the corona crisis this year, crude oil prices will rise by more than 21%.

According to Market Insider on the 6th (local time), Goldman Sachs predicted that the day before, “the recent corona spread, the demand for crude oil has decreased in the short term,” and that “Brent crude oil may soar to $65 per barrel at the end of this year.” $65 a barrel is 21% higher than the previous day’s closing price.

Brent oil prices rose an additional 1% on the same day, showing a 7% increase for two consecutive days.

This is thanks to Saudi Arabia’s voluntary announcement of production cuts. Saudi Arabia decided to cut production by an additional 1 million barrels per day in February and March.

This announcement came after’OPEC+’, a group of major oil producing countries such as the Organization of Petroleum Exporting Countries and Russia, made a decision to increase production slightly from February to March on the 5th. Rather than allowing two countries, Russia and Kazakhstan, which have opposed maintaining the scale of production cuts, to increase production, Saudi Arabia further cut production to relieve concerns about oversupply.

Goldman Sachs said, “Considering that global oil demand exceeded expectations due to relatively weak movement prohibition orders and elastic flight demand growth in December of last year, Saudi Arabia’s decision to cut production was unexpected.” “The most appropriate reason to explain Saudi Arabia’s decision.”

In fact, considering other publications by Goldman Sachs, the media analyzed that the decline in oil demand in countries that have recently been issued a high-strength movement restriction order, such as the UK, will affect the demand for crude oil.