Goldman Sachs: US gas to go up to $5, oil to hit $130 by year-end

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Goldman Sachs: US gas to go up to $5, oil to hit $130 by year-end

BERLIN – MARCH 23: A gasoline station attendant pumps diesel into a car at a filling station on March 23, 2010 in Berlin, Germany.  (Photo Illustration by Sean Gallup/Getty Images)

OAN Newsroom

Updated 7:55 AM PT – Friday, August 12, 2022

The investment bank Goldman Sachs predicts that oil and gas prices will significantly increase by the end of this year due to a shortage of energy in international markets.

In a new report, Goldman Sachs said that the average US gas price will increase to five-dollars. Today, the average gas price is three dollars and 99-cents. The report added that the Brent oil benchmark will go up to $130 per barrel — up from the $99 per barrel we have today.

Goldman Sachs said that seasonal factors and an economic rebound in China will drive energy prices higher. Damien Courvalin, the head of energy research at Goldman Sachs, touched on the topic.

"Keep in mind right, and this is a big seasonal you have to keep in mind, refiners are about to slow down, right? That's a seasonal turnaround," he said. "Maintenance, what does that mean? That means diesel and gasoline prices are about to go up because usually up have an inventory buffer. This time you don't have it so prices have to do the work and that's rational that crude should be weaker and diesel gasoline should be starting to outperform."

Goldman Sachs believes energy prices will grow despite the falling demand due to the US slowdown or due to a recession.

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Source: Goldman Sachs: US gas to go up to $5, oil to hit $130 by year-end