Opinions black and white - oil price- April 28 WOW - see yellow
Goldman Sachs
expects global oil demand to realize the biggest jump ever over the next six months, the investment bank said on Wednesday, keeping its bullish forecasts for oil prices this summer.
Higher demand for travel and acceleration of vaccinations in Europe are set to result in “the biggest jump in oil demand ever, a 5.2 million barrels per day (bpd) rise over the next six months,” Reuters quoted Goldman Sachs as saying in a note to clients.
Goldman Sachs continues to see oil rising to $80 per barrel this summer and says that “The magnitude of the coming change in the volume of demand -- a change which supply cannot match -- must not be understated,” as carried by FXStreet.
Irina Slav
In the meantime, prices have not been climbing higher, making Gulf economies' job harder. It is clear to all that to diversify away from oil that these economies need higher oil revenues. What could be seen as a vicious circle is the reason their efforts at diversification have so far had quite mixed success. And unless prices recover strongly, these economies will continue spinning in this circle.
The chances of that happening are slim.With Covid-19 infections surging in India—the world's third-largest consumer and a major importer of oil—and with more supply coming on the market from OPEC, including Gulf producers, benchmarks are likely to remain range-bound. Unfortunately for the Gulf economies, that range is lower than most of them need to make budget ends meet.