Goldman Sachs says Oil is going to $80/bbl due to largest demand surge

Goldman Sachs on oil and commodities:

  • Commodities will rally 13.5% in the next six months
  • oil to $80/bbl , global consumption will surge 5.2m b/d over the next six months, which is 50% larger than the next biggest increase over that timeframe since 2000 … “The magnitude of the coming change in the volume of demand — a change which supply cannot match — must not be understated”
  • copper to $11,000/ton
  • commodity markets have looked through the sharp rise in Covid-19 cases in India
GS forecast greater mobility, citing:
  • aided by vaccines,
  • a seasonal upswing in transportation, manufacturing and construction, beginning now and accelerating into June
  • pace of vaccination accelerates in Europe, increased travel demand will result
  • easing of international travel curbs in May
GS comments come via Bloomberg