The Beach Energy Ltd (ASX: BPT) share price is having a bumper month, thanks to a resurgence in oil prices.
At the time of writing, the Beach Energy share price is up another 6.72% today to $1.460.
Oil demand gathers momentum
Oil demand is expected to exceed pre-pandemic levels in 2022 according to OPEC's latest monthly oil market report.
In addition, S&P Global reported further support for oil following "gas-to-oil switching and improving demand in Asia amid tighter inventories".
Natural gas prices have boomed to 7-year highs in anticipation of a very cold winter in the northern hemisphere.
Goldman Sachs raises oil forecasts
The Beach Energy share price is enjoying some time in the green after, earlier this week, Goldman Sachs raised its forecast year-end price for oil from US$80 to US$90 per barrel.
In the note, the broker said:
While we have long held a bullish oil view, the current global supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above-consensus forecast and with global supply remaining short of our below consensus forecasts.
Goldman pointed to favourable supply and demand dynamics, citing Hurricane Ida taking a major toll on global supply while a "global gas shortage will increase oil-fired power generation".
Beach Energy share price booms to 5-month high
Its been a breakthrough month for the Beach Energy share price, surging 39% in September to a 5-month high today.
That said, Beach Energy shares are still a long way away from breakeven in 2021, down 20.8% year to date.
Shares in the oil and gas producer were sent to the doghouse in late April after it announced a major downgrade in oil reserves, reduced its FY21 production guidance and withdrew its five-year outlook.
Despite the company struggling on an operational front, oil prices appear to have brought life back to both the Beach Energy share price and the broader oil industry.
Brent crude rallied above US$80 per barrel for the first time in three years on Tuesday. While oil prices have since retraced to US$77.7 per barrel, experts like Goldman and S&P Global are bullish about its outlook.
