On June 4, oil prices surged to hit their 2-year high at $72 per barrel as OPEC and OPEC+ countries agreed to keep their supply cuts in place. The global economic recovery, impressive job growth in the United States, and declining COVID-19 cases in India have led to a steady rise in oil prices over the past few days. Goldman Sachs (NYSE:GS) energy research analysts expect oil prices to rise further if a nuclear agreement is reached between the United States and Iran, owing to an anticipated bullish repricing of the commodity. As the international oil markets gain momentum on the back of rapid economic recovery, both PBR and LUKOY are expected to perform well in the coming months.
Brazil’s higher-than-expected GDP growth in the first quarter helped the country to recover its pre-pandemic levels, in turn raising the domestic demand for oil. Russia’s LUKOY, in comparison, is expected to grow substantially due to rising oil prices.