A research note from Goldman Sachs on oil.
Sees Brent crude oil averaging $100 per barrel over the last three months of the year
- down from its previous forecast of $125
For 2023 sees Brent averaging $108 per barrel
- down from its previous $125
Said it anticipated oil prices would likely rise from the current levels citing:
- “critically tight” market
On the lower forecast, citing:
- strong dollar
- weakening demand
- remain powerful headwinds to prices into year-end.
- Yet, the structural bullish supply set-up -- due to the lack of investment, low spare capacity and inventories -- has only grown stronger, inevitably requiring much higher prices
- "While it may be surprising that oil is pricing such low growth expectations, this reflects the outsized exodus of investors, forced away by the extreme price volatility this spring,"
This also from overnight: