Reactions and expectations of investment banks continued following the establishment of The “OPEC +” alliance to reduce production by two million barrels per day From next November.
Goldman Sachs stated that developments with regard to supply pave the way for higher prices at the end of 2022, and the price of Brent crude will rise to $110 per barrel in the fourth quarter of 2022.
Morgan Stanley expected that Brent crude will find its way to $100 a barrel in the first quarter of 2023 following the “OPEC +” move.
UBS said the oil market is expected to tighten further, and the price of Brent crude will rise above $100 a barrel in the coming quarters.
UBS attributed this to the recent OPEC+ cut, along with the European ban on Russian crude imports, the possible end of the Organization for Economic Cooperation and Development’s withdrawal from strategic oil reserves, and the shift in demand from gas to oil expected this winter.
Meanwhile, ING Groep NV Bank said that the OPEC + decision is sufficient to significantly change the balance in the market next year, adding that there is a clear trend for the price of Brent crude to rise above the bank’s previous expectations of $97 a barrel next year.
RBC Capital Markets said it does not expect to release huge amounts of new US strategic reserves in the near term.
ESAI Energy said the OPEC+ agreement will lead to a moderate price hike due to an actual surplus in the market.
