Less-than-effective Western sanctions against key oil suppliers, recession fears, and rising interest rates have helped keep crude prices subdued this year. But Jeff Currie, head of global commodities research at Goldman Sachs, warned the lull won’t last on Thursday.
“The fundamentals are turning the corner,” he told CNBC, arguing demand for oil is rebounding as recession fears fade. Currie now expects Brent Crude oil prices, the international benchmark, to jump roughly 16% from current levels to $86 per barrel by the end of the year. That could lead to a rebound in U.S. retail gasoline prices, which have dropped 27% over the past year from a nationwide average of $4.86 per gallon to under $3.60, according to the American Automobile Association, and acted as a major contributor to inflation slowing from above 8% last summer to its current rate of around 4%.
