Goldman Sachs predicted an oil surplus in the market early next year, with prices falling.
According to Reuters, Goldman Sachs lowered its Brent crude price forecasts for the first and second quarters of 2023 to $90 and $95 per barrel, from $115 and $105 per barrel, respectively.
The bank said the risk of oil prices rising this winter was lower, with China's consumption lower than previously expected, Russia's exports close to pre-war levels and production problems in Kazakhstan and Nigeria easing.
Goldman Sachs expects the oil market to end the current quarter with a surplus of 1.6 million barrels per day, and that the seasonal decline in demand will result in a surplus of 1.3 million barrels per day in the first quarter of next year.
The bank expects global demand to grow by two million barrels per day in 2023, with the lifting of anti-Corona restrictions in China and the recovery of international travel.
For the full year 2023, Goldman Sachs said it expects Brent to average $98 per barrel and WTI at $92 per barrel, down from its previous forecast of $110 for Brent and $105 for WTI.
In the last two quarters of next year, Goldman Sachs said that it expects Brent crude to rise to between $105 and $105 per barrel, which will remain lower than its previous forecast of $110 per barrel.
He said he expects prices to rise in 2024, with Brent crude averaging $105 per barrel and WTI at $99 per barrel.
