American investment bank Goldman Sachs is optimistic about the short-term prospects for oil. It anticipates strong demand in the next few quarters.

The bank said demand could push The Organization of the Petroleum Exporting Countries  to increase its output by another 2 million barrels per day in the third quarter. This is on top of the 2 million bpd that the group decided to add between May and July.

"We forecast a larger rebound in oil demand this summer than OPEC and the International Energy Agency, requiring an additional 2 million bpd increase in OPEC+ production from July to October," Goldman Sachs said.

The bank estimates the excess oil inventories might normalize by the fall of this year. Analysts said the expectations were based on recent fundamentals data such as OPEC's decision to ease production cuts an entire month sooner than expected.

Last week, OPEC+ agreed to significantly ease production cuts. The organization said it would gradually increase its collective oil production by around 1 million bpd over the next three months. OPEC+ members will raise their collective production to 350,000 bpd in May and June and then to more than 400,000 bpd in July.

Saudi Arabia also agreed to ease its unilateral decision to cut 1 million bpd within the next few months. The Kingdom said it would commit to increasing its production by 250,000 bpd each month.

Concerns continue to be raised about demand in Europe and India. This sent oil prices down by nearly 2% Monday.

In March, Goldman Sachs said it expected Brent Crude prices to hit $80 per barrel in the third quarter this year. This was $5 higher compared with its previous forecast issued just a few weeks earlier. As of early Tuesday, Brent Crude remained at around $62 per barrel.

During the sell-off of oil in March, Goldman said the dip was just a "big breather" and a good "buying opportunity" for the commodity before it hits $80 per barrel.