12.6 C
New York
Monday, November 28, 2022

Goldman raises oil price forecasts on ‘very bullish’ OPEC+ cuts

Goldman raises oil price forecasts on 'very bullish' OPEC+ cuts
© Reuters. A general view of the Phillips 66 Company’s Los Angeles Refinery, which processes domestic & imported crude oil into gasoline, diesel fuel, and other petroleum products, in Carson, California, U.S., March 11, 2022. REUTERS/Bing Guan

 

GS
-1.40%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

MS
-2.17%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

LCO
+0.46%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

(Reuters) – Goldman Sachs (NYSE:GS) has raised its oil price forecast for this year and 2023, as the U.S. bank expects the 2 million barrels per day (bpd) output cut agreed by OPEC+ producers to be “very bullish” for prices going forward.

OPEC+, which groups members of the Organization of Petroleum Exporting Countries and allies including Russia, agreed its deepest cuts to production since the 2020 COVID pandemic at a meeting in Vienna on Wednesday.

If latest reduction in output by OPEC+ is sustained through December 2023, it would amount to $25 per barrel upside to their Brent forecast, with potential for price spikes even higher should inventories fully deplete, Goldman Sachs said in a note dated Wednesday.

Goldman Sachs raised its 2022 Brent price forecast to $104 per barrel from $99 per barrel and 2023 forecast to $110 per barrel from $108 per barrel.

The U.S. bank also raised its fourth quarter 2022 and first-quarter 2023 Brent price forecast by $10 per barrel to $110 and $115 per barrel, respectively.

Benchmark Brent crude was trading around $94 per barrel on Thursday, after gaining 1.7% in the previous session. [O/R]

Such a large OPEC+ effective cut will likely warrant another response from the U.S. administration, and even a coordinated International Energy Agency SPR release, the bank noted.

“The oil market’s buffers (stocks and spare capacity) remain critically low, and higher prices remain the key viable, long-term solution to increased inventories in the short term and higher supply capacity medium term,” Goldman added.

Morgan Stanley (NYSE:MS) on Wednesday also raised its oil price forecast for the first quarter of 2023, predicting tight supply going forward.

Source: Investing.com

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,279FansLike
12,893FollowersFollow
744FollowersFollow
- Advertisement -

Latest Articles

Popular Articles