Goldman Sachs Group Inc. has rejoined the $100-a-barrel oil club, raising its forecast for crude oil back to triple digits as demand booms and OPEC+ supply curbs tighten the market.
With prices rising more than 30 per cent since mid-June to breach $95 a barrel on Tuesday, the Wall Street bank pushed up its 12-month forecast for global benchmark Brent to $100 from $93. However, most of the rally “is behind us,” the bank said in a note.
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Oil has rallied strongly in recent months, hitting a 10-month high, thanks to the significant supply curbs from OPEC+ linchpins Saudi Arabia and Russia. Brighter outlooks in the two biggest economies, the US and China, have also supported the advance, with stockpiles declining at a rapid clip. At present, most major economies remained on track for a soft landing, Goldman Sachs said.
“We believe that OPEC will be able to sustain Brent in an $80-to-$105 range in 2024 by leveraging robust Asia-centric global demand growth,” analysts Daan Struyven, Callum Bruce and Yulia Zhestkova Grigsby said in the report dated Sept. 20. At the same time, “OPEC is unlikely to push prices to extreme levels, which would destroy its long-term residual demand,” they said.
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