Goldman expects oil prices to hit $90 by year-end as supply tightens | Reuters

Goldman expects oil prices to hit $90 by year-end as supply tightens | Reuters

Goldman Sachs raised its forecast for year-end Brent crude oil prices to $90 per barrel from $80, as a faster fuel demand recovery from Delta variant and Hurricane Ida's hit to production led to tight global supplies.

Brent futures hit a near three-year high last week as global output disruptions have forced energy companies to pull large amounts of crude out of inventories.

Oil prices were trading at $79.19 a barrel, as of 0619 GMT on Monday, while U.S. West Texas Intermediate (WTI) crude were at $75.08 a barrel. read more

"While we have long held a bullish oil view, the current global supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above-consensus forecast and with global supply remaining short of our below consensus forecasts," Goldman said in a note dated Sept. 26.