Goldman Sachs said that with soaring global gas prices, a colder winter in Europe and Asia could in turn boost demand for oil, putting upside risk of $5 per barrel for its Brent price forecast in the fourth quarter of 2021 of $ 80 a barrel.
A global spike in wholesale electricity and gas prices has raised concerns over high energy bills and winter shortages, having already forced some energy supplies to shut down in Britain.
A colder winter could lead to a 900,000 barrels per day (bpd) increase in oil demand, the Wall Street Bank said in a note.
“Tight global gas supplies create a clear and potentially significant bullish catalyst for the oil market this winter, greater than the risk of declining global oil demand from another Delta-type COVID wave,” Goldman added.
