Oil is on track to record its largest monthly gain since January 2022 as the market continues to tighten following the latest supply cut announced by OPEC+.
West Texas Intermediate was trading slightly above $80 per barrel on Monday morning, touching its peak in April last year and rallying almost 14% since the start of July. Should its current value hold until market close, the US crude benchmark will achieve its best performance for July in the last two years.
“Record high demand and Saudi supply cuts have brought back deficits,” Goldman Sachs noted. “The market has abandoned its growth pessimism.” Goldman Sachs’ team of analysts forecast that Brent would hit $86 per barrel in December.