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As Crude Oil Rallies, Wall Street Ups Outlook

Published 05/02/2018, 14:50
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Investing.com - Crude oil's surprising this year has Wall Street rethinking its outlook.
Goldman Sachs (NYSE:GS) is the latest firm to raise its price target, joining J.P. Morgan, Morgan Stanley (NYSE:MS) and Bank of America/Merrill Lynch.
Crude oil has been trading at three-year highs this year, following a long-awaited rebound that began in mid-2017.
Goldman raised its near-term average price for Brent North Sea crude from $62 to $75 a barrel. The firm's 12-month target is up to $82.50.
JP Morgan's average price forecast for 2018 is $70 with a high of $78. Morgan Stanley's high is $75. BAML is forecasting $64 a barrel.
Oil prices have gained thanks to strong global demand, a weakening dollar, geopolitical risks and OPEC's continued adherence to a production ceiling.
Demand from China, now the world's largest importer of oil, has been stronger than expected, helping make previous predictions look conservative,
Earlier this year, a Reuters poll of three dozen analysts and economists forecast an average Brent price of just under $60 a barrel.
Brent rose 3.3% in January, its biggest one-month gain in five years.

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