Goldman Expects Brent Prices to Reach $ 75 a Barrel in Q2

Goldman Sachs Commodities Research raised its forecast for the price of Brent crude for the second and third quarters by $5 a barrel, after OPEC and its allies kept their agreement to cut supplies unchanged and said that “the discipline of shale oil producers” is likely behind the group’s increased production at a slower pace.

The bank said in a note dated Thursday that it now expects Brent prices to reach $75 a barrel in the second quarter and $80 a barrel in the third quarter of 2021.

Shale oil producers in the United States have reacted quickly to oil price gains in recent years, winning market share as Saudi Arabia and other major producers cut back production, but have been reluctant to boost production since the demand was destroyed by the pandemic last year.