Goldman Sachs sees Brent at $80!

Goldman Sachs sees Brent at $80!

2021-05-24 • Updated

What?

Despite the lack of demand in the oil market in recent months, Goldman Sachs expects the oil prices to go higher amid global economies’ stabilization and a rise of mobility across the world.  After major economies eased their lockdown restrictions, the price of Brent has climbed from the lows around $50 in January to almost $70. The price of WTI followed a similar path, rising from $50 to $65 per barrel since the start of the year.

Why?

The analysts of Goldman Sachs are confident about restoring demand in the oil market. According to them, 75% of the demand recovery will come from developed economies and China.  Vaccination progress will be the key factor supporting the oil prices. Another positive trigger for oil prices is connected with the expansion of international travel.

The main risk for the rising oil prices is related to the possible restoring of oil production from Iran. The country is in the process of reviving the 2015 nuclear deal right now. If the deal is successfully reached, the United States will lift sanctions on Iran’s oil, boosting the supply of the black gold. However, a three-month monitoring deal between Iran and the U.N. nuclear watchdog had expired last week and limited access to images from Iranian nuclear sites. This pause has provided a boost to the oil prices on Monday. All in all, analysts are sure that even if the deal is reached and provides the recovery in Iranian production in 2022, the OPEC+ will take action and halt its 500 thousand barrels/day production increase in the second half of 2021. As a result, reaching $80 in this kind of scenario seems highly possible.

The technical picture of XBR/USD

The price of Brent has risen to $68.3 following the news of the pause in negotiations between Iran and the US. The first resistance for Brent lies at $68.3. To pull the price of Brent lower, bears need to drag it below $66.4 to $64.60. 

XBRUSDDaily.png

LOG IN

Similar

Oil: Russia-Ukraine Crisis Could Boost Oil Prices
Oil: Russia-Ukraine Crisis Could Boost Oil Prices

Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

Latest news

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera