Goldman Sachs upgrades its oil price target to $90, indicating the lingering impact of Hurricane Ida on supply while demand increases, more so in COVID-19 averse Asia.
- Analysts led by Damien Courvalin increased their year-end outlook on Brent crude oil to $90 from $80.
- Hurricane Ida is likely to prove to be the most bullish hurricane in US history, disrupting the ramp-up in OPEC+ output since July.
- Global oil demand is rebounding to converging around pre-COVID levels. Traffic congestion in China quickly recovered after a drop in summer. The Delta-driven decline in global flights was smaller than initially anticipated.
- Brent crude futures rose 1.00% to $78.12 per barrel, and the West Texas Intermediate contract rose 1.50%.
Analysts at BCA Research stated an upgraded possibility of the second La Nina event this winter will keep gas buyers searching markets for supplies.
BR1! Up +1.88%, CL1! Up +1.43%