Goldman says that oil is likely to reach $110 a barrel by the end of the year.
In a recent research note, the bank increased its oil price target from $100 a barrel to $110 a barrel.
Russia and Saudi Arabia will reduce their oil supply by 2 million barrels a day from November.
The Biden administration had called on the oil group to keep supply constant in order to keep gas prices low.
By the end of the year and the first quarter of next year, Goldman said that the price of oil would go to $110 a barrel and $115 a barrel, respectively.
The bank's head of energy research said this week that price risks could be even higher.
Goldman said that oil prices could go up even more if the inventories of members of the Organization of the Petroleum Exporting Countries fall.
According to the bank, only demand destruction will allow for price relief if there is a long period of high prices.
If these cuts are sustained through December of next year, they will add $25 a barrel to our previous forecast of $107.50 a barrel, with the potential for price spikes even higher should inventories fully deplete, requiring demand destruction as a last resort," they said.
The price of oil fell on Thursday, with the price of oil falling by 0.21% to $93.17 a barrel and the price of oil falling by 0.21% to $87.49 a barrel. Since the beginning of the year, the price of crude has gone up while the price of gasoline has gone down.
Oil prices rose after the Organization of the Petroleum Exporting Countries agreed to cut production by 2%.
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