Goldman Sachs cut its Brent crude price forecast to $90/bbl in the second quarter of 2023 from its previous estimate of $105/bbl.
The bank expects oil prices to gradually rise to $100 a barrel by December, a level that is expected to continue into 2024, assuming OPEC increases production by one million barrels a day in the second half of the year.
The bank said: “If OPEC maintains current production, it is likely that the price of Brent crude will reach $107 a barrel in December,” Reuters reported.
He noted that the price of Brent could reach $100 a barrel in December if Russia and OPEC maintain their current production, and slightly increase for the US, and if OECD demand is slightly below the base level.
Goldman Sachs expects a recovery in demand in China and that stable supplies from non-OPEC countries from June will push the market into deficit.
The US Bank assumes that OPEC will step back during its June meeting from the planned production cut.
