2023-11-17 17:47:49
Goldman Sachs expects Brent crude oil prices to average $92 per barrel in 2024, amid strong demand while OPEC supplies will remain at low levels.
The bank said in a recent note that it expects a deficit of 0.7 million barrels per day and strong demand growth of 1.6 million barrels per day in 2024.
The bank explained that its expectations indicate that the oil market will tighten at a moderate pace, but it still believes that there is large surplus production capacity to deal with shocks.
Goldman Sachs added that the Organization of the Petroleum Exporting Countries (OPEC) is prepared to keep the price of Brent crude within the range of 80 to 100 dollars.
Meanwhile, Saudi Arabia and Russia, part of the OPEC+ producer group, confirmed this month that they will continue additional voluntary cuts in oil production until the end of this year, as concerns regarding demand and economic growth continue to weigh on crude oil markets.
Brent crude futures were trading at regarding $80 a barrel, following falling five percent to their lowest levels in four months in yesterday’s session and heading towards incurring losses for the fourth week in a row.
Regarding these declines, analysts from Goldman Sachs said in a note, “Oil prices fell slightly this year, even though demand exceeded our optimistic expectations.”
They added, “OPEC’s non-essential supplies were much stronger than expected, and partially offset the OPEC cut.”
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