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Goldman Sees $110 Oil by Third Quarter on Full China Reopening

(Bloomberg) — Commodity prices — and especially crude oil — will hinge on China’s reopening after Lunar New Year celebrations later this month, according to Goldman Sachs Group Inc (NYSE:GS).

“What is the best reopening play? It is oil,” Jeff Currie, the bank’s global head of commodities research said in a Bloomberg Television interview Wednesday. “What is idled? Planes, trains and automobiles. You turn them all back on, that’s going to be a big pop in oil demand.”

A barrel of Brent oil could reach $110 by the third quarter if China and other Asian economies fully reopen from coronavirus restrictions, Currie said. Futures are trading above $82 a barrel on Wednesday.

Copper, which this week rose above $9,000 a ton for the first time since June, is likely to top $11,500 a ton by the end of 2023, Currie added. In the long run, copper could reach $15,000 a ton, in line with Trafigura Group’s projections.

©2023 Bloomberg L.P.




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