Goldman Sach says oil may hit $110 by Q3 2022

Oil well drilling

The course of China’s reopening after the Lunar New Year celebrations will provide the cues for the global oil market, Bloomberg reported, citing Goldman Sachs’ Global Head of Commodities Research Jeff Currie.

“What is the best reopening play? It is oil,” he said, adding, “What is idled? Planes, trains and automobiles. You turn them all back on, that’s going to be a big pop in oil demand.”

He expected a barrel of Brent oil could reach $110 by the third quarter if China and other Asian economies fully reopen from coronavirus restrictions.

Currie indicated that copper prices will likely reach $11,500 per ton by the end of 2023 before surpassing $15,000 in the long run.

Copper rose above $9,000 a ton for the first time since last June, the report said.