Supply constraints and a global economy rapidly rebounding from the debilitating COVID-19 pandemic lays the foundation for much higher oil prices, Goldman Sachs global head of commodities research Jeffrey Currie argues.

“Near term our highest conviction long is oil where we still see brent [crude oil] averaging $80/bbl this third quarter with potential spikes well above $80/bbl. Global demand likely rose to 97.0 million barrels a day in recent days from 95.0 million barrels a day just a few weeks ago as the U.S. passes the baton to Europe and emerging markets, where even India is beginning to show improvements,” Currie said in a new research note to clients on Friday.

To be sure, oil prices have had a bullish bias of late… CLICK for complete article