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#Futures Movers: Goldman Sachs hikes oil forecast to $90, citing ‘most bullish hurricane in history’

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“#Futures Movers: Goldman Sachs hikes oil forecast to $90, citing ‘most bullish hurricane in history’”

Goldman Sachs has boosted its oil price target to $90, citing the lingering impact of Hurricane Ida on supply while demand ramps up, particularly in COVID-averse Asia.

Analysts led by Damien Courvalin lifted their year-end forecast on Brent crude-oil to $90 from $80.

Hurricane Ida should prove to be the most bullish hurricane in U.S. history, cancelling the ramp-up in OPEC+ output since July.

At the same time, global oil demand is back to converging to pre-COVID levels. Traffic congestion in China quickly recovered after a summer dip. The Delta-driven decline in global flights was smaller than the analysts initially feared.

Brent crude futures
BRN00,
+1.31%
rose 1% to $78.12 per barrel, and the West Texas Intermediate contract
CL.1,
+1.30%
added 1% to $74.79.

Natural-gas futures
NG00,
+3.19%
meanwhile rose over 3%. “An upgraded probability of a second La Niña event this winter will keep gas buyers scouring markets for supplies,” said analysts at BCA Research.

Steve Goldstein

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