Oil prices fluctuated near the opening on Friday after the surge, which was caused by an unexpected drop in gasoline stocks in the US last week, buoyed by a positive forecast by Goldman Sachs analysts. Price gains on Thursday marked best performance of the Oil market for more than a week.
The price of April contract for Brent on the ICE Futures exchange in London increased by $ 0.76 (1.1%) to $ 69.65 per barrel on Thursday. March futures for WTI on the New York Mercantile Exchange NYMEX jumped $ 1.07 (1.65%) to $ 65.80 a barrel.
On Friday, the optimism subsided though prices remain biased to the upside thanks to positive projections of bank analysts.
“The rebalancing of the oil market is probably achieved six months earlier than we expected,” Goldman Sachs said in a report.
According to bank research, the price for Brent crude oil will rise to $ 75 per barrel in three months, $ 82.5 per barrel in six months but will recede to $75 per barrel in one year from previously expected $ 62 per barrel by all terms. At the same time, they believe that long-term growth is limited and by 2020 prices will again fall to $60 per barrel against the sustainable pickup background in the output of Shale Oil industry in the United States.
The bank expects that in 2018, the oil supply deficit in the world market will be 200 thousand barrels per day, and next year the market will have a surplus of 730 thousand barrels per day.