Reuters reports that Goldman Sachs said a strong rebound in global oil demand could push Brent crude oil prices above its year-end forecast of $90 per barrel.
Goldman Sachs said it expected oil demand will shortly reach pre-COVID-19 levels of around 100 million barrels per day as consumption in Asia rebounds after the Delta COVID-19 wave.
In addition, the bank estimated gas-to-oil switching may contribute at least 1 million bpd to oil demand.
"While not our base-case, such persistence would pose upside risk to our $90/bbl year-end Brent price forecast," Goldman said in a research note dated Oct. 24.
"We would need prices to rise to $110 /bbl to stifle demand enough to balance the market deficit we currently see in 1Q22 given our expectation that OPEC+ continues on the current path of +0.4 mb/d per month increases in quotas."