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Goldman Raised Oil Price Projections 2019 In View of Supply Cuts and Sanctions

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Goldman Sachs has raised its forecast for oil prices this year with supply hit by OPEC-led production cuts and US sanctions on Iran and Venezuela.

The investment bank said in a note dated April 8 that it now expects Brent’s benchmark price to average $ 66 per barrel in 2019, compared to a previous estimate of $ 62.50.

Oil in the United States is expected to average $ 59.50 a barrel ahead of the latest forecast of $ 55.50.

Oil prices hit the highest level in five months on Tuesday, with Brent peaking at $ 71.34 a barrel and US crude at $ 64.77 a barrel.

Oil markets have tightened this year as the United States has imposed sanctions on Iran and Venezuela’s oil exporters and the OPEC producer group has decided to cut supply to bolster prices.