Goldman Sachs sees oil reaching $80 a barrel later this year

Oil is expected to maintain its recovery to reach $80 a barrel in the last quarter of this year, Goldman Sachs anticipatesThe company considers that the scenario for the evolution of black gold is undervalued, even counting on the more than likely resumption of Iranian production.

The US bank anticipates that the recovery in global demand will be stronger than most analysts predict, justifying the expectation with an agile and efficient vaccination program that will result in a stronger global economic recovery than initially forecast.

"The expectation for rising oil prices remains intact given the large increase in vaccination-based demand and the inelastic supply of the commodity," reads a Goldman Sachs note, quoted by Reuters news agency. "Mobility in the U.S. and Europe is accelerating rapidly, with increased vaccination, the end of feedlots and the pickup in industrial and freight activity," it continues.

The bank's financial analysis department anticipates an increase in demand of 4.6 million barrels per day on average by the end of the year, with much of the increase occurring over the next three months.

At the same time, the markets' concern over Iran's resumption of production was short-lived, given the expectation that no major news regarding the nuclear deal for the country would emerge. Iran has been under international sanctions that limit the Persian giant's ability to produce and export this commodity.

On the other hand, any attempts by Tehran to increase production will be offset by the Organization of Petroleum Exporting Countries (OPEC), anticipates the bank's note, which has been implementing planned output cuts in order to boost the barrel price, after it reached negative values a little over a year ago. Thus, the increase resulting from the Iranian strategy would be offset by the rest of the cartel, containing the effects on the global market.

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