American multinational investment bank and financial services company Goldman Sachs is forecasting an unprecedented jump in global oil demand over the next six months that would see Brent crude prices hitting the $80 mark by the third quarter of this year.
Bloomberg reported on Wednesday that oil rose to the highest in a one-day period over the past week as expectations strengthened for a revival in global consumption despite the resurgent pandemic in India and Brazil.
Goldman is forecasting an unprecedented jump in demand over the next six months as vaccination rates rise. According to the Bloomberg article, this would see benchmark Brent crude reaching $80 in the third quarter.
At this price, Guyana would rake in around US$80 million for each million-barrel shipment of Liza Crude it exports.
In its latest Monthly Oil Market Report, the Organization of the Petroleum Exporting Countries (OPEC) said world oil demand growth is expected to increase by about 6 million barrels per day this year. OPEC said oil demand in the second half of this year is projected to be positively impacted by a stronger economic rebound than assumed last month, supported by stimulus programmes and a further easing of lockdown measures, amid an acceleration in the vaccination rollout, largely in the OECD region.
“The market expects a major revitalization for global oil demand from this summer onwards,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy. “As vaccination campaigns progress and as lockdowns are set to soon be lifted in Europe and other recovering economies, the need for road and jet fuels will increase and the result will be felt.”
Guyana exported its second million-barrel oil cargo for 2021 this month, securing around US$60 million for that lift. When the proceeds received by the government for the first quarter of this year from oil produced and sold at the offshore Liza Phase 1 Development are added to the amount currently in the Natural Resources Fund, this is expected to see total revenue exceeding US$340 million. The country began producing oil in December 2019.