Goldman Sachs boosted its year-end Brent crude oil price projection to $90 per barrel from $80, citing constrained global supplies as a result of a speedier gasoline demand recovery from the Delta variant and Hurricane Ida's production disruption. Last week, Brent futures hit a near three-year high as oil companies were forced to withdraw massive amounts of crude from stocks due to global supply disruptions.
The Organization of Petroleum Exporting Countries and Allies, or OPEC+, agreed earlier this month to continue its July resolution to phase out record output cutbacks. Hurricanes Ida and Nicholas wreaked havoc on platforms, pipelines, and processing hubs in the Gulf of Mexico earlier this month, shutting down most offshore production for weeks. On the demand side, Goldman stated that risks in the winter were "squarely" skewed to the upside, since a global gas shortage would enhance oil-fired power generation.
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