Oil was hit hard in the markets this week but that’s not stopping one investment bank from putting an $80 a price target on the commodity.
Brent crude futures for May (BRNK21) lost 6.59% while West Texas intermediate crude (CLJ21) lost 6.4%.
Prices recovered slightly in Friday’s trading (in part amid supply concerns tied to a report that a Saudi Aramco oil facility in Riyadh was attacked by drones) yet, many investors have speculated that oil will continue its decline. The bears predict a prolonged downturn thanks new lockdowns in Europe (Paris is now locked-down for the month) and an increasingly global shift towards green energy.
But, analysts at Goldman Sachs are bucking the trend.
$80 a Barrel By Summer
According to a new note to clients cited by MarketWatch, Goldman believes the pull-back in prices is “transient” and “a compelling buying opportunity.”
As such, forecasters at Goldman predict that the price per barrel on Brent will rise to $80 this summer.
The call follows Goldman’s prediction last month when it said Brent prices would hit $75 a barrel in the third quarter of this year.
Brent gained $0.22 on Friday to trade at $64.75 per barrel.
