Brent oil may hit US$75 as supply response trails demand

Revised forecast: A worker fuels a vehicle at a gas station in Rio de Janeiro. Goldman raised its Brent forecast by US$10 a barrel, to US$70 next quarter and US$75 in the following three months. — Bloomberg

NEW YORK: Oil prices will rally sooner and higher than previously thought as the global energy demand recovery outpaces the supply response from the Opec+ alliance, shale and Iran, according to Goldman Sachs Group Inc.

Consumption will get back to pre-virus levels by late July, while output from major producers is likely to remain “highly inelastic” to the rising prices, the bank said in a note.