Daily Management Review

Goldman Sachs expects oil prices to rise to $80 a barrel


Goldman Sachs expects oil prices to rise to $80 per barrel as early as the fourth quarter of 2021. According to analysts, even the easing of sanctions against Iran will not prevent prices from recovering on the back of growing demand.

Goldman Sach predicted an increase in oil prices to $80 a barrel in the fourth quarter of this year, reports Reuters. According to analysts, the market underestimates the recovery in demand even with a possible resumption of Iranian supplies. 

Even with an "aggressive forecast" of a resumption of Iranian oil supplies in July this year, the Brent price will reach $80 a barrel in the fourth quarter of 2021, Goldman Sachs said in a report. Contributing to this, according to experts of the bank, will be recovery of world economies on the background of growing availability of vaccines against coronavirus. 

Last week, Iranian President Hassan Rouhani said the United States was close to lifting sanctions on Iran's oil sector, the country's central bank and other entities. As Bloomberg wrote earlier, Iran has already started preparing to increase its oil exports in case talks on easing restrictions are successful. 

In case of removal of American restrictions Iran may return to pre-sanction levels of supply in just a few months, analysts said. Iman Nasseri, managing director for Middle East at FGE consulting firm, told Bloomberg that the country could increase oil production to 4m barrels per day in three to six months.

source: reuters.com, bloomberg.com