Wall Street banks accept OPEC’s strategy as they embrace $80 oil price


Wall Street’s biggest banks have changed sides and are embracing a surge in oil prices, Bloomberg reports.

Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. have all issued a flurry of bullish forecasts in the past fortnight. They’ve abandoned their skepticism and are accepting that OPEC’s output cuts are finally succeeding in clearing a global glut.

This faith is a recent phenomenon. At almost every stage of OPEC’s quest to end the industry’s worst downturn in decades, there were a few prominent analysts ready to cast doubt on the effort.

Now, Goldman estimates Brent will reach $75 a barrel over the next three months and will climb to $82.50 within six months, analysts including Damien Courvalin wrote in an emailed report. Their previous estimate for both time periods was $62 a barrel.