Goldman Sachs forecasts Brent crude prices to rise further in Q3, reaching $86 per barrel due to healthy consumer demand and solid summer demand for transportation and cooling.
JPMorgan analysts predict summer inventory draws will push Brent back into the high $80s-$90 range by September.
Oil prices surge past $78 and $81 per barrel for WTI and Brent respectively on Monday.
Some analysts remain cautious about OPEC's decision to unwind some of its voluntary output cuts starting in October.
Traders pile back into oil following news of additional sanctions on Iran's shipping sector.
Oil prices experienced a significant surge on Monday, with both West Texas Intermediate (WTI) and Brent crude rising over 2% to reach $78.13 and $81.56 per barrel respectively.
The increase in oil prices came as traders piled back into the commodity following news of additional sanctions on Iran's shipping sector, which had contributed to last week's selloff that saw prices drop to a four-month low.
Analysts at Goldman Sachs forecast Brent crude prices to rise further in the third quarter, reaching $86 per barrel due to healthy consumer demand and solid summer demand for transportation and cooling.
Despite this optimistic outlook, some analysts remain cautious about the potential impact of OPEC's decision to unwind some of its voluntary output cuts starting in October. The production phaseout is expected to keep prices from going too high, while buying activity will increase if prices fall too much.
The recent pullback in oil was also seen as temporary by JPMorgan analysts, who predict summer inventory draws will push Brent back into the high $80s-$90 range by September.
However, Wall Street widely predicts slowing demand amid greater supply will send prices lower next year. Goldman Sachs has kept its target for next year unchanged at an average of $82 per barrel.
Goldman Sachs forecasts Brent crude prices to rise to $86 per barrel in Q3 2023
Daan Struyven, managing director and head of oil research at Goldman Sachs expects a Q3 deficit due to healthy consumer demand and solid summer demand for transportation and cooling
