OPEC sees oil market supported by demand in a monthly report
Goldman Sachs sees $100-a-barrel crude by the third quarter
Oil surged to the highest level in seven years as robust demand and strained supplies make physical markets run hot in the world’s largest consuming region.
Futures in New York climbed to $85.74 a barrel, the highest since October 2014. Traders are paying higher and higher premiums for cargoes in Asia, as fears fade over the demand impact from omicron, while supplies are tightened by a range of outages from Libya to North America. Meanwhile, a drone attack on oil facilities in the United Arab Emirates on Monday flared geopolitical risks.
Adding to bullish indicators, Goldman Sachs Group Inc. raised its Brent forecasts through 2022 and 2023 and predicted $100 oil in the third quarter. Robust fundamentals have reversed last year’s price slump, keeping the market in a surprisingly large deficit, it said.