TOKYO – Oil prices rose on Monday as the slow return of US crude output cut by frigid conditions raised concerns about supply, just as demand recovers from the depths of the coronavirus pandemic.
Brent crude was up 76 cents, or 1.2 percent, at $61.67 a barrel after gaining nearly 1 percent last week. US oil rose 74 cents, or 1.3 percent, to $59.98 a barrel, having fallen 0.4 percent last week.
Investment bank Goldman Sachs raised its forecast for Brent by $10, helping to boost the market, with expectations for Brent to reach $70 by the second quarter and $75 in the third quarter.
“We now forecast that oil prices will rally sooner and higher, driven by lower expected inventories and higher marginal costs – at least in the short run – to restart upstream activity,” Goldman analysts wrote.