Free Trial

Goldman Suggest Higher Prices Needed to Rebalance Market

OIL

The latest Goldman Sachs update shows Brent crude to average 140$/bbl during Q322 before reducing to average 125$/bbl in 2023.

  • The 2H22 and 1H23 forecast is up 10$/bbl from the previous forecast on the back of recovering Chinese demand and reduced production from Russia.
  • They suggest further demand destruction is required next year for global inventories to normalize by late 2023. Slower global growth and increased OPEC production from Saudi Arabia and Iran will help to rebalance the market.
  • Russian production is expected to fall by 1mbpd by the year end and US strength and high refining margins will drive high retail prices

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.