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Goldman Sachs now expects West Texas Intermediate (WTI) crude prices to rise to $51.38 per barrel in 2021 versus the previous forecast of $48.50. 

The investment bank is anticipating a gradual recovery in global oil demand and expects prices to draw support next year from the OPEC+ output cut agreement and shutdowns elsewhere. 

Key quotes (Source: Reuters)

Oil production has started to decline quickly from a combination of scaleback in activity, shut-ins and core-OPEC/Russia production cuts.

Demand is also beginning to recover from a low base, led by a restarting Chinese economy and in?ecting transportation demand in developed market economies.

WTI oil is trading near $21.90 at press time, representing a 7% gain on the day.