×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: brent crude oil 140 a barrel | goldman sachs | energy prices | inflation | biden | recession

Goldman Sachs Forecasts $140 Oil

Goldman Sachs Forecasts $140 Oil
An oil pumpjack pulls oil from the Permian Basin oil field in Odessa, Texas. (Getty Images)

By    |   Wednesday, 08 June 2022 05:48 AM EDT

Goldman Sachs is now predicting that brent crude oil will average $140 a barrel between July and September, up from its prior forecast of $125. Brent crude is currently trading at $120 a barrel.

On top of this, Goldman Sachs analysts foresee gas stations raising prices to levels commensurate with oil at $160 a barrel, in order to curtail demand.

Gas prices in the U.S. have been increasing by several cents on a daily basis, setting new records each day. On Wednesday, June 8, the average cost of a gallon of gas has risen to $4.96, up from $4.92 on Tuesday, according to the American Automobile Association.

"A large spike in prices remains quite possible this summer," the Goldman Sachs strategists wrote in their client note, CNN reports. "We believe oil prices need to rally further to normalize the unsustainably low levels of global oil inventories."

Moody's Analytics Economist Mark Zandi warns that if oil reaches $150 a barrel, that would tip the U.S. into a recession — and "there is not way out."

The principle reason why gas is rising, according to the U.S. Energy Information Administration (EIA), is low inventories of gas and oil combined with below average refinery production.

EIA adds that the production of oil and gas by Russia will fall by 1.1 million barrels a day between May 2022 and year-end 2023, a bigger decrease than EIA previously forecast.

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
Goldman Sachs is now predicting that brent crude oil will average $140 a barrel between July and September, up from its prior forecast of $125. Brent crude is currently trading at $120 a barrel.
brent crude oil 140 a barrel, goldman sachs, energy prices, inflation, biden, recession
235
2022-48-08
Wednesday, 08 June 2022 05:48 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved