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Goldman Sachs Raised the Oil Price Forecast for 2019

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US crude oil

On April 8, US crude oil prices rose 2.1% and settled at $64.4 per barrel—the highest closing level for active US crude oil futures since October 31. The ongoing conflict in Libya might have been behind the rise in oil in the last few trading sessions.

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Goldman Sachs price forecast for oil

In a note on April 8, Goldman Sachs (GS) increased its price forecast for Brent crude oil to $66 in 2019—$3.5 higher than the last forecast. On April 8, Brent crude oil active futures settled at $71.1 per barrel.

Goldman Sachs expects WTI crude oil to average around $59.50 in 2019 from $55.50. OPEC’s supply cuts and US sanctions on Iran and Venezuela are the key factors behind the rise in oil prices.

Key technical levels

At 5:34 AM EST on April 9, US crude oil prices have risen by 27 cents. Crude oil prices are 7.5%, 13.2%, 19.7% and 4.9% above their 20, 50, 100, and 200-day moving averages, respectively. Prices above these moving averages indicate bullishness for oil.

The S&P 500 Index (SPY), the Dow Jones Industrial Average (DIA), and the S&P Mid-Cap 400 (IVOO) might be impacted by any short-term rise in oil prices due to their exposure to the energy sector. Upstream energy stocks like ConocoPhillips (COP), Chesapeake Energy (CHK), and Occidental Petroleum (OXY) will likely be impacted by any rise in oil prices.

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