Goldman Sachs says it remains bullish on oil prices in 2021

Lower crude production due to reduced activity and OPEC+ cuts, coupled with a partial recovery in oil demand, should drive prices higher next year, Goldman Sachs Equity Research said in a note.

The Wall Street bank raised its 2021 forecast for global benchmark Brent crude prices to $55.63 per barrel from $52.50 earlier. The bank hiked its estimate for U.S. West Texas Intermediate (WTI) crude to $51.38 a barrel from $48.50 previously.

"Oil production has started to decline quickly from a combination of scaleback in activity, shut-ins and core-OPEC/Russia production cuts. Demand is also beginning to recover from a low base, led by a restarting Chinese economy and inflecting transportation demand in developed market economies," it said.

Oil prices fell on Monday, having posted their first weekly gain in four on Friday as the Organization of the Petroleum Exporting Countries, Russia and other producers, known as OPEC+, began their record output cuts.

Brent was last trading around $25.97 at barrel, while WTI was at $18.31.