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Oil Prices Supported by Resilient Oil Demand in Europe: Goldman

OIL

Oil prices are seeing support from resilient oil demand in Europe according to Goldman Sachs earlier this week.

  • Consumption rose by 0.1mb/d y/y in February to 13.7mb/d counter to a previous forecast for a 0.3mb/d decline in the month and 0.2mb/d fall over 2024.
  • The unexpected European demand strength would have a +$5/bbl effect if it holds for the whole year.
  • The Goldman Sachs model suggests persistent softness in US supply growth is worth +$5/bbl and OPEC+ extending cuts through 2024 is +$7/bbl.
  • Persistent softness in China demand would have a -$7/bbl effect.
  • Brent is forecast to average $83/bbl in 4Q 2024.
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Oil prices are seeing support from resilient oil demand in Europe according to Goldman Sachs earlier this week.

  • Consumption rose by 0.1mb/d y/y in February to 13.7mb/d counter to a previous forecast for a 0.3mb/d decline in the month and 0.2mb/d fall over 2024.
  • The unexpected European demand strength would have a +$5/bbl effect if it holds for the whole year.
  • The Goldman Sachs model suggests persistent softness in US supply growth is worth +$5/bbl and OPEC+ extending cuts through 2024 is +$7/bbl.
  • Persistent softness in China demand would have a -$7/bbl effect.
  • Brent is forecast to average $83/bbl in 4Q 2024.