Goldman Sachs sees oil prices rising 22% this summer as Europe eyes switch to crude from gas amid Russian supply cutoff

Goldman Sachs doubled down on its forecast for oil prices hitting $140 per gallon over the summer after crude suffered two consecutive weekly losses for the first time since April.

The bank’s chief commodities strategist, Jeff Currie, told CNBC the the recent price pullbacks are a buying opportunity and that under-investment in the space continues to drive the view for oil climbing higher.

“The situation across the energy space is incredibly bullish right now,” he said.

Currie’s comments back up a note published by Goldman on June 7 that predicted Brent crude prices will hit $140 per barrel. Oil has surged as much as 50% from the start of 2022 as Russia’s invasion of Ukraine has upended global markets and pushed buyers away from Moscow’s supply.

On Monday, Brent futures rose 1.56% to $114.88 a barrel, meaning Goldman’s forecast represents upside potential of more nearly 22%.

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