Goldman Sachs, a leading investment bank, has projected that the benchmark Brent crude oil prices will drop by $10 to a range of $70-$90 per barrel in 2024. The anticipated decrease is attributed to additional oil supplies from the United States. This forecast presents a twist for oil producers who were expecting an increase in the value of oil. Now faced with the possibility of decreasing prices, the challenge for them is to find new ways to maintain profitability. Goldman Sachs expects oil prices to fluctuate within the $70-$90 range. "In such a scenario, we might see moderate volatility in crude oil prices in 2024. The increase in oil reserve will likely limit the price surge of Brent crude," analysts at Goldman Sachs believe. The bank's experts anticipate Brent to recover to a peak of $85 per barrel by the middle of next year. Under this scenario, the benchmark crude price would average around $80-$81 between 2024 and 2025. This is a revision from the previous forecast of $92 per barrel. At the start of this week, Brent crude was trading at $77 per barrel which is 20% below the multi-month highs reached in September 2023. In comparison, the price of West Texas Intermediate (WTI) was $72 per barrel. Goldman Sachs also predicts that US crude oil production will reach 11.4 million barrels per day in the fourth quarter of 2024. Based on this, the bank's analysts have revised their forecast for the total growth in US crude supply to 0.9 million barrels per day.
