Goldman Raised 12-Month Brent Oil Forecast to $100/bbl

Goldman Sachs raised its forecast for Brent crude over a twelve-month period by $7/bbl to $100/bbl because of rising demand and supply restrictions by OPEC+, analysts including Daan Struyven and Callum Bruce said in a note.

• “Overall, we believe that OPEC will be able to sustain Brent in an $80-$105 range in 2024 by leveraging robust Asia-centric global demand growth (1.8mbpd) and by exercising its pricing power assertively,” the bank said.
• Crude prices are unlikely to trade for long below $80/bbl in 2024, however, most of the rally in prices is likely over and Brent is unlikely to exceed $105/bbl for a sustained period of time next year, the bank said.
• Saudi Arabia is expected to unwind its extra 1mbpd cut gradually starting in 2Q24, but the 1.7mbpd reduction with eight other OPEC+ nations is seen remaining fully in place in 2024, Goldman said.