Goldman Sachs Now Sees Oil Hitting $140 This Summer
High oil and gasoline prices will need to rise even higher this summer to incentivize new production and discourage consumption, according to Goldman Sachs. The Wall Street bank is now forecasting Brent crude oil prices will average $140 a barrel between July and September, up from its prior call of $125 a barrel. Brent is currently trading at about $120 a barrel.
Worse, Goldman Sachs said summer retail gas prices are going to need to spike to levels normally associated with $160 oil in order to curtail demand.
“A large spike in prices remains quite possible this summer,” Goldman Sachs strategists wrote in a report to clients.
The forecast suggests that the worst is not nearly over for consumers already dealing with high gas prices.
The national average price for regular gasoline jumped another five cents on Tuesday to a fresh record of $4.92 a gallon, according to AAA. That’s up by 30 cents over the past week and 62 cents in the past month.
Source: CNN
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