Goldman Sachs isn’t wavering in their bullishness about oil prices. In a research note this morning they cite tight supplies as the continuing fundamental driver of prices and believe prices will reach new all-time highs in the next year:
“We continue to see fundamentals tightening over the course of this year, likely pushing prices back to recent highs by next year.
It is nevertheless important to reiterate that while we saw recent prices as having risen above the levels consistent with underlying near-term supply-demand fundamentals, we continue to believe that the oil supply-demand fundamentals will tighten further over the course of this year, and likely reach critically tight levels by early next year should Libyan oil supplies remain off the market. Consequently, it is important to emphasize that even as oil prices are pulling back from their recent highs, we expect them to return to or surpass the recent highs by next year.”
Source: Goldman Sachs