This week, Goldman Sachs upwardly revised its forecast for Brent crude to $140 per barrel, citing the unresolved structural shortages.

Goldman Sachs head of energy research commodities Damian Kuvalin prepared a report on oil balance for a period since the beginning of the year. It was time when China imposed a lockdown in several cities, Russia reduced its oil supply to foreign countries, and western countries began using their strategic oil reserves.

Although demand in China has already recovered, oil production in Russia may slide by another half a million barrels a day. Damian Kuvalin supposes that in the next 12 months from July, Brent crude may rise to $135 per barrel. The price will hardly fall until the end of 2023, when global oil reserves are expected to hit their usual levels.The global oil market is still in a structural deficit and requires a significant increase in oil prices to restore balance, experts at Goldman Sachs think.Last week, when OPEC+ decided to add more oil output on top of a monthly increase of over 200,000 barrels a day, oil prices surged instead of falling. Such market reaction could be explained by the fact that only some OPEC+ members have free capacities to increase oil output. Only some large members are doing their best to meet current quotes.Another reason is that demand for oil is not high enough. Thus, Damian Kuvalin thinks that oil prices should rise more to start affecting demand. Citi also upgraded its forecast, explaining changes by the delay in negotiations between the US and Iran on a new nuclear deal.