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Cold Weather Demand Adds to Global Growth Outlook: Goldman Sachs

OIL

Crude prices to rise with the expectation of sharp improvements in the growth outlooks for Europe and China as well as from a weaker US dollar according to Goldman Sachs.

  • Their forecast is for Brent to reach 105$/bbl by Q4 2023.
  • In the short term oil demand is to find support this month due to colder weather in key markets according to a note from 1 Feb.
  • Global temperatures are forecast below seasonal normal in the coming days lifting crude demand by 200kb/d. Warm weather in the first half of Jan lower demand by 300kbpd.
  • “This weather shift implies that yet another oil headwind is now likely behind us.”

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