May 28, 2023

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Oil will hit $100 a barrel in April 2024

Goldman Sachs: Oil to hit $100 a barrel in April 2024

In the second move by its analysts in less than 24 hours, it revised its forecast for oil prices published yesterday Monday, saying prices will reach $100 a barrel from December 2024. It will reach this price in April 2024.

The bank expected that “an increase in OPEC’s pricing power, that is, as a large economic engine, its ability to raise prices without too much harm to demand” would boost “OPEC+” revenues as the increase in prices offsets the decrease in supply.

On Sunday, Saudi Arabia and its partners in the “OPEC +” alliance announced a voluntary cut in oil production of 1.16 million barrels per day until the end of the year, compared to a 3.66 million barrel per day cut from the alliance. This helped push prices up to $86 a barrel.

Goldman Sachs is expected to achieve nearly 90% compliance with the voluntary production cut plan, countries that have announced cuts have a strong compliance record, and nearly 90% of the output cut decision announced in October 2022 was implemented by January. 2023.

Given the rapid growth in emerging markets, the decline in Russian supplies and the slowdown in US supplies, the bank reiterated its expectations for the market to return to persistent deficits from June.

Yesterday, Monday, Goldman Sachs raised the price of Brent crude oil for December 2023 by $5 to $95 per barrel.

Barclays raised its oil price forecast by $5 from its target price of $92 a barrel, while financial adviser Jefferies said Brent crude would end the year at $96 a barrel.

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Oil prices rose more than 6% on the first working day after announcing the decision to cut output over the weekend, and the White House renewed criticism of the Organization of the Petroleum Exporting Countries (OPEC). Organization of Petroleum Exporting Countries (OPEC)OPEC) for production “is not recommended at this time due to uncertainty in the market”.

(Reuters, The New Arab)