Jerusalem24 -Two of the largest banks of Wall Street in the United States expected a rise in oil prices during the coming period, according to the American “Financial Times” newspaper.
The source stated that both “JP Morgan Chase” and “Goldman Sachs” expect oil prices to rise significantly when the Corona epidemic recedes.
He explained that the most optimistic forecasts indicate a return of international crude oil prices to $ 100 a barrel, a level that has not been reached since 2014.
The expected rise is based on the belief that the fiscal stimulus will boost consumption, along with the beginning of a return to normal life.
This would change the conditions in the oil sector, which recorded huge losses last year due to the repercussions of the Corona virus.
“We can see oil exceed $ 100 a barrel, or even more,” Christian Malek, head of oil and gas at JP Morgan, said in a conference call last week.
For his part, Geoffrey Curry, a veteran analyst at Goldman Sachs, said he believes oil is trading in the $ 80 range or higher this year.
He continued, “The launch of financial incentives targeting the middle and lower classes will boost consumption of basic commodities … This group does not drive electric cars, they drive regular cars.”
Since the end of October, Brent crude, the international benchmark, has risen by more than two-thirds to $ 63 a barrel, driven by optimism left by the global vaccination campaign and production cuts.