Goldman Sachs expects “all-time high” oil demand to drive prices higher.
Goldman Sachs expects record demand in oil markets to push up crude oil prices in the near term.
“With demand reaching an all-time high, we expect a sizable supply gap in the second half, with around 2 million bpd in the third quarter,” Daan Struyven, Director of Petroleum Research at Goldman Sachs.
Struyven said his forecast for Brent oil, which is currently just over $80 a barrel, is to rise to $86 by the end of the year.
Struyyen said that while US crude oil production increased significantly last year to 12.7 million barrels per day, on the other hand, the growth rate will slow down in the rest of 2023.
Struyven argued that the absence of a deal following the G-20 energy ministers meeting points to “very important” uncertainty over long-term oil demand.