(Bloomberg) -- Gasoline and oil prices should bounce back through the end of the year as the market still needs to balance rising demand and tight supplies, according to Goldman Sachs Group Inc.. 

Brent oil futures could go as high as $130 per barrel, with retail gasoline prices in the US surging back to about $5 per gallon, said Damien Courvalin, Goldman’s head of energy research in a Bloomberg Television interview.

These are the levels “at which we need to see sustained prices to eventually solve the market deficit,” Courvalin said. 

Read more: Oil consumption to accelerate as gas crisis spurs switch, IEA says

Demand for crude is poised to rise as power generators and industrial producers switch from pricier natural gas. The combination of relatively lower prices and the continued reopening of economies should also help boost consumption. The supply outlook is aggravated by the lack of an inventory buffer for gasoline and diesel at a time when refiners are heading into their maintenance season.

Goldman earlier this week cut its Brent forecast. Futures were up more than 2% to just below $100 a barrel as of 12:07 p.m. in New York.

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