Is the Bottom in for Oil? Goldman Turns a Bit More Upbeat

Bank sees crude trading between $25 and $45 a barrel in Q2

by Victor Reklaitis
Market Watch

Goldman Sachs is sounding a little more positive on oil, predicting prices will trade between $25 and $45 a barrel in this year’s second quarter, up from a $20-$40 range in the first quarter.

The bank’s note suggests crude’s price, which hit 12-year lows this year, may have found a bottom.

The bank’s overall price forecast for the second quarter is $35, smack in the middle of that $25-$45 range; it expects $40 a barrel in the third and fourth quarters.

Goldman continues to “expect that the subsequent price recovery will only be gradual to match the pace of inventory draws,” said a team of the bank’s commodities analysts led by Damien Courvalin and Jeffrey Currie, writing in a note dated Friday.

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