Goldman Sachs raised its forecast for the price of oil for the current and next year, as the US bank expected that the production cut agreed upon by OPEC + producers by two million barrels per day would have a “significant bullish” impact on prices in the next stage.
The OPEC+ group, which includes members of the Organization of the Petroleum Exporting Countries and allies including Russia, agreed on the largest production cuts since the height of the Covid-19 pandemic in 2020, at a meeting in Vienna on Wednesday.
Goldman Sachs said in a note on Wednesday that if the OPEC + production cuts continue until December 2023, the price of Brent crude could increase to $ 25 a barrel, with prices likely to rise further if stocks are completely depleted.
Goldman Sachs raised its forecast for the price of Brent crude for 2022 to $104 a barrel from $99, and for 2023 to $110 a barrel from $108 a barrel.
The US bank also raised its forecast for the price of Brent crude in the fourth quarter of 2022 and the first quarter of 2023 by ten dollars per barrel to 110 and 115 dollars per barrel, respectively.
Brent crude was trading around $94 a barrel on Thursday, after rising by 1.7 percent in the previous session.
(Archyde.com)