(Reuters] – Goldman Sachs, NYSE:, said that a stronger rebound in world oil demand could propel prices past their year-end prediction of $90 per barrel.

According to the U.S. Investment Bank, oil demand is expected to return to pre-COVID-19 levels at around 100 million barrels per daily (bpd), as Asia recovers from the Delta COVID-19 waves.

The bank also estimated that gas-to oil switching could contribute to at least 1,000,000 bpd of oil demand.

Goldman stated in an Oct. 24 research note that “While this is not our base case, such persistence would pose upside risks to our $90/bbl Year-End Brent price forecast.”

Strong demand and tight supply have driven oil prices to new multi-year records. U.S. West Texas Intermediate Crude futures are trading at $84.38/barrel and Brent crude futures are at $86.26 as of Monday 0731 GMT. [O/R]

We would require prices to reach $110/bbl in order to stifle the demand sufficient to offset the 1Q22 market deficit. This is despite OPEC+ continuing its current track of +0.4 mb/d monthly increases in quotas.

The Organization of the Petroleum Exporting Countries and Russia, together with their allies known as OPEC+ announced this month it would maintain an agreement that allowed it to raise output by 400,000 bpd per calendar month through at least April 2022.

Goldman spoke out about China. “Despite recent power cut and industrial activity impacts in China, oil consumption is expected to be supported instead by switching to diesel engine generators and diesel engines on LNG trucks as well as a boost in coal production.