Goldman Sachs: Oil will reach $100 a barrel in April 2024
In the second move by its analysts in less than 24 hours, Goldman Sachs modified its forecast for oil prices, which were issued yesterday, Monday, and said that prices will reach $ 100 a barrel, starting in December 2024, to say today that oil will reach this price in April. 2024.
The bank expected “an increase in OPEC’s pricing power, which means its ability to raise prices without much harm to demand, as a major economic engine,” estimating that reducing production will raise “OPEC +” revenues, because the increase in prices compensates for the decrease in the volume of supplies.
On Sunday, Saudi Arabia and its partners in the “OPEC +” coalition announced a voluntary cut in oil production by 1.16 million barrels per day until the end of this year, bringing the total announced cuts from the coalition to 3.66 million barrels per day, which helped raise prices to move around $86 a barrel.
Goldman Sachs also expected to achieve close to 90% compliance with the voluntary production cut plan, given that the countries that announced the cuts have a strong compliance record, and had previously implemented nearly 90% of the production cut decision announced in October 2022 by January 2023.
The bank reiterated its expectations that the market would return to a continuous deficit from June onwards, given the rapid growth in emerging markets, the decline in Russian supplies and the slowdown in US supplies.
Yesterday, Monday, Goldman Sachs raised its forecast for the price of Brent crude in December 2023 by $5 to $95 per barrel.
Barclays also raised its oil price forecast by $5 from its target price of $92 per barrel, while Jefferies, a financial advisor, indicated that Brent crude could end the year at $96 per barrel.
On the first working day after announcing the decision to cut production at the weekend, oil prices jumped by more than 6%, and the White House renewed criticism of the Organization of Petroleum Countries (OPEC), as it considered that the cuts by the Organization of the Petroleum Exporting Countries (OPEC)OPEC) for production “not recommended at this time due to uncertainty in the market”.
(Archyde.com, The New Arab)