{"id":40533,"date":"2022-06-07T15:38:17","date_gmt":"2022-06-07T15:38:17","guid":{"rendered":"https:\/\/harchi90.com\/oil-will-surge-to-140-this-summer-driving-gas-prices-goldman-says\/"},"modified":"2022-06-07T15:38:17","modified_gmt":"2022-06-07T15:38:17","slug":"oil-will-surge-to-140-this-summer-driving-gas-prices-goldman-says","status":"publish","type":"post","link":"https:\/\/harchi90.com\/oil-will-surge-to-140-this-summer-driving-gas-prices-goldman-says\/","title":{"rendered":"Oil Will Surge to $ 140 This Summer, Driving Gas Prices, Goldman Says"},"content":{"rendered":"<div>\n<ul class=\"summary-list\">\n<li>Goldman Sachs has predicted oil will surge to $ 140 a barrel this summer, with a fall in Russian supply adding to pressures in the market.<\/li>\n<li>But the bank said consumers will feel as though prices have surged to $ 160, in part because refinery bottlenecks mean gas prices are surging.<\/li>\n<li>Brent crude oil has already jumped around 50% this year to trade at roughly $ 119 a barrel on Tuesday.<\/li>\n<\/ul>\n<div class=\"inline-newsletter-signup &#10;                        headline-regular loading\" id=\"formContainer\" data-component-type=\"inline-newsletter-module\" data-event-label=\"10_things_markets\" data-list=\"10 Things Before the Opening Bell\" data-acq-source=\"marketsverticalinline\">\n<section class=\"inline-newsletter-content\">\n<div class=\"js-loader hidden\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"svg-icon \" version=\"1.1\" role=\"img\" width=\"50\" height=\"50\" viewbox=\"0 0 50 50\" style=\"enable-background:new 0 0 50 50;\" xml:space=\"preserve\">\n                        <title>Loading<\/title>\n                        <desc>Something is loading.<\/desc>\n                        <path fill=\"#111\" d=\"M43.935,25.145c0-10.318-8.364-18.683-18.683-18.683c-10.318,0-18.683,8.365-18.683,18.683h4.068c0-8.071,6.543-14.615,14.615-14.615c8.072,0,14.615,6.543,14.615,14.615H43.935z\">\n                          <animatetransform attributetype=\"xml\" attributename=\"transform\" type=\"rotate\" from=\"0 25 25\" to=\"360 25 25\" dur=\"0.6s\" repeatcount=\"indefinite\"\/>\n                        <\/path>\n                      <\/svg><\/div>\n<\/section><\/div>\n<p>Goldman Sachs economists have predicted oil prices will surge to $ 140 a barrel this summer, with a drop in Russian production and a gradual recovery in Chinese demand adding to the pressure on already low supplies.<\/p>\n<p>But they said consumers will feel as though oil has hit $ 160 a barrel, because a lack of capacity at refineries means gasoline and fuel prices are rising more than would normally be expected, adding to costs across the economy.<\/p>\n<p>Oil prices have already jumped roughly 50% this year as a result of Russia&#8217;s invasion of Ukraine and broader supply and demand imbalances.  High oil prices have pushed US gas prices to a record high of $ 4.92 a gallon, according to the AAA.<\/p>\n<p>Brent crude, the international benchmark, and WTI crude, the US benchmark, traded at around $ 119 and $ 118 a barrel respectively Tuesday.<\/p>\n<p>Goldman&#8217;s analysts, including chief commodities strategist Jeff Currie, said in a note Monday that they expected prices to go higher &#8220;given the current record low levels of inventories.&#8221;<\/p>\n<p>They predicted Brent will average roughly $ 140 a barrel in the third quarter of the year, but said it could go higher.<\/p>\n<p>&#8220;A large spike in prices remains quite possible this summer, when demand seasonally reaches its peak,&#8221; the analysts wrote.<\/p>\n<p>However, Currie and colleagues said consumers would feel as though oil had jumped by even more.<\/p>\n<p>They said bottlenecks at refineries &#8211; which turn crude oil into usable oil products &#8211; mean gas and fuel costs are considerably higher than would normally be expected compared to benchmark prices.  The analysts said there was &#8220;an unprecedented refining shortage.&#8221;<\/p>\n<p>Goldman&#8217;s team said a rise in Brent crude to $ 140 a barrel would therefore mean prices across developed economies reaching levels normally associated with $ 160 a barrel this summer.<\/p>\n<p>The investment bank said it expects prices to stay high, even though a surge to around $ 140 would trigger some &#8220;demand destruction&#8221; by encouraging people to stop using as much energy.<\/p>\n<p>Goldman said Brent oil prices would average $ 115 a barrel in the fourth quarter of 2023, with WTI averaging $ 110.<\/p>\n<p><em><strong>Read more: <\/strong>Big-money investors favor these 9 stocks this quarter, according to a Goldman Sachs analysis of over 1,300 funds with a combined $ 5.2 trillion in assets<\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Goldman Sachs has predicted oil will surge to $ 140 a barrel this summer, with a fall in Russian supply adding to pressures in the market. But the bank said consumers will feel as though prices have surged to $ 160, in part because refinery bottlenecks mean gas prices are surging. Brent crude oil has &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/oil-will-surge-to-140-this-summer-driving-gas-prices-goldman-says\/\"> <span class=\"screen-reader-text\">Oil Will Surge to $ 140 This Summer, Driving Gas Prices, Goldman Says<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/i.insider.com\/629f347b987cff0019babe18?width=1200&format=jpeg","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/40533"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=40533"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/40533\/revisions"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=40533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=40533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=40533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}