Crude oil and copper to rise by over 10%: Goldman Sachs
Investment bank Goldman Sachs expects a 13.5% increase in commodity prices within six months, news wire PAP reports, according to the Warsaw Business Journal.
Crude oil could reach USD 80 per barrel, and the increase in demand for it is to be the fastest in 20 years.
In the latest Commodity Watch forecast, Goldman Sachs expects a sharp jump in oil demand, from the current level of 94.5 million barrels per day to 99 million in the third quarter. It will be linked to the progress of the vaccination campaign against the coronavirus in Europe, including will be associated with an increase in the number of trips.
Lifting travel restrictions will be associated with a jump in the demand for aviation fuel, translating into an increase in oil consumption by 1.5 million barrels a day – estimates Goldman Sachs. The bank also notes that the level of aviation fuel consumption this summer will be 30 percent lower than before the outbreak of the pandemic.
Goldman Sachs also raised its copper price forecasts. The average price of a metric tonne of this metal in 2021 is USD 9,675. In 2022, it is expected to be USD 11,875, and in 2023 – USD 12,000. In 2025, the price of a tonne of copper is expected to reach USD 15,000.
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