Goldman Sachs
"There is a growing likelihood that vaccines will become widely available starting next spring, helping support global growth and oil demand, especially jet," Goldman analysts noted. The investment bank also predicted that sales would improve to 3.7 million barrels per day between January and August of next year.
Oil prices took a major hit after the Federal Reserve forecasted of a slump in the economy due to the numerous new coronavirus outbreaks in recent weeks. OPEC and its allies have decided to reduce its original production of 9.7 million barrels per day to 7.7 million barrels per day to balance supply with the falling demand, but outlook still remains uncertain.
Earlier this year, Goldman's head of commodities Jeffery Currie said that the short-term prospects of oil remained weak, but in 2021, prices would start to improve more markedly. He noted that if prices increased quickly, they would interfere with the market rebalancing by bringing more shale production back online.
Separately, Goldman analysts said back in July that demand for oil would likely recover to pre-crisis levels by 2022, spurred by a return to work for millions, a shift towards more private transport, and government support in the form of infrastructure spending.
Oil prices have recently fluctuated between gains and losses as the broader market looks for direction amid rising global coronavirus cases and lockdown risks. President Donald Trump has reaffirmed that the United States will not enter another period of lockdowns, but lower travel demand and oversupply concerns still weigh heavy on the commodity's future demand outlook.
