Global investment bank Goldman Sachs predicted that oil prices will rise to $72 this year.
On the 22nd (local time), Goldman Sachs raised its target price for Western Texas crude oil (WTI) from $65 to $72. The point of reaching $72 is expected in the third quarter. WTI closed the deal for $61.7 on the 22nd. Brent oil is also expected to rise to $75.
Goldman Sachs raised its oil price forecast for three reasons: low crude oil inventory, delayed production recovery, and speculative demand. Goldman Sachs said, “We expect oil prices to rally further,” and explained, “There are more investors looking for crude oil thanks to the economic recovery and economic stimulus.” Goldman Sachs added, “It is also in the limelight as a means to hedge the impact of inflation on crude oil.”
However, it predicted that the price could go down from 4Q. This is because the supply can return to normal from this point. Goldman Sachs predicted that WTI will trade at $67 a barrel and Brent oil will trade at $70 per barrel in the fourth quarter. The average WTI price this year was expected to be $68.8.
Economic media CNBC explained that Goldman Sachs’s outlook is in line with the portfolio adjustments of big players. Buckshire Hathaway, led by Warren Buffett, recently announced that it sold 57.2 million shares of Apple in the fourth quarter of last year and bought 48 million shares of Chevron, a refinery.
US hedge fund tycoon David Tepper has also significantly increased its stake in refined oil stocks. Appaloosa Management, led by him, purchased 8.1 million 540 shares of Occidental, a refinery in the fourth quarter of last year. Energy transfer, an energy transport company, also increased 27% compared to the previous quarter.
Reporter Park Uimyung [email protected]
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