S&P/ASX 200 Index (ASX: XJO) oil shares could be worth watching amid Chinaâs reopening, according to Goldman Sachs global head of commodities research Jeff Currie.
The expert tipped the black liquid to climb to trade at US$110 a barrel by the third quarter of 2023 if international travel takes off in the nation, as per Bloomberg TV.
Of course, that would likely be good news for ASX 200 oil shares such as Woodside Energy Ltd (ASX: WDS), Beach Energy Ltd (ASX: BPT), and Santos Ltd (ASX: STO).
Their bottom lines typically hinge on the energy commodityâs value, with surges in the oil price pushing earnings sky-high in 2022.
Letâs take a closer look at why Currie dubbed oil âthe true reopening playâ.
Tailwinds for oil price as China reopens
The oil price could rebound to near-2022 highs this year as China relaxes COVID-19 restrictions and reopens its borders, as announced late last year.
In fact, Currie expects oil’s value to leap more than 30% from around US$82.67 as of Wednesdayâs close.
The expert believes oil could reach U$90 a barrel this quarter. It could then increase to US$95 in the June quarter as âthe reopening gains momentumâ.
Throw a premium due to the reopeningâs speed and international air travel returning to China on top, and âyouâre up to U$110 by [the] third quarterâ, Currie said.
And he’s not alone in his bullishness. Indeed, itâs surpassed by that of hedge fund trader Pierre Andurand, my Fool colleague James reported earlier this week.
Andurand is said to believe the price of oil could surpass US$140 a barrel this year. Similarly to Currie, Andurand’s forecast relies on Asiaâs reopening and is conditional on no new lockdowns.
That could lead demand to increase by 4 million barrels this year, according to the trader.
No doubt, all eyes will be on ASX 200 oil shares if such forecasts come to fruition.
The post Oil best China reopening play: Goldman Sachs appeared first on The Motley Fool Australia.
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