According to Goldman Sachs, in 2023, oil prices may surge to $100 per barrel. Low supply and record high demand could be the main drivers of such a jump.
Goldman Sachs supposes that in the next two years, Brent crude may cost almost $85 per barrel. Such a stellar rise could be caused by bigger spending by oil producers and a huge oil supply deficit. Damien Courvalin, the investment bank’s head of energy research, warns that Brent oil may reach three-digit levels. He thinks that oil prices may approach $110 per barrel if supply exceeds the mounting demand.
In general, analysts at Goldman Sachs are very optimistic about the oil market despite the current increase in commodities (+40%). Not so long ago, the Brent benchmark dropped below $66 per barrel. Experts at Goldman Sachs consider this decline to be a really significant one. It is highly possible that it was caused by deep concerns about new lockdowns amid the Omicron variant.
At the end of the year, demand for energy, including petrol and diesel fuel, is at a record high. According to the forecast, in 2022-2023, demand may hit new peaks. Only demand for jet fuel remains under significant pressure amid restrictions on flights caused by the coronavirus spread. However, in the near future, deferred demand for tourism will boost prices of jet fuel, analysts are sure.
The bank’s currency strategists expect a confident increase in global oil demand. By the end of the decade, that is by 2030, demand may surge to 160 million barrels a day.
