Goldman Sachs Expects Brent to Hit $80 in Q3 of 2021

Goldman Sachs raised its forecast for Brent crude for second half by $5 a barrel after some OPEC+ members promised further cuts, namely shale oil producers leading to slowdown in production.

The Wall Street Bank said in a note on Thursday that Brent prices are now expected to hit $75 a barrel in Q2 and $80 a barrel in Q3 of 2021.

Recently, shale oil producers are winning market share as Saudi Arabia and other major producers cut production since demand was destroyed by the pandemic.

OPEC+ agreed on Thursday to extend most oil production cuts until April, after it decided that the demand recovery from the pandemic remains fragile.