Goldman lowers its 2023 oil price projection due to deterior...| MENAFN.COM

Friday, 02 December 2022 11:16 GMT

Goldman lowers its 2023 oil price projection due to deteriorating demand picture


(MENAFN) Due to anticipated weaker demand and a higher United States currency, Goldman Sachs lowered its oil price projection for 2023 on Tuesday. However, it added that continuous global supply disappointments only strengthened its long-term optimistic perspective.

Despite observing a seasonally adjusted global oil market deficit in both the fourth quarter of this year and upcoming year, Goldman's commodities research group cut its prediction for the coming year by USD17.5 per barrel on average.

According to a research note released by the investment bank, it revised its oil price forecast lower by USD19 per barrel on average for the period spanning from the fourth quarter of this year to the fourth quarter of upcoming year. It also sees the global oil demand growing in 2023 by 2.0 million barrels per day at current prices, versus a previous forecast of 2.5 million bpd.

The letter read, “even with a cautious growth outlook ... the oil market remains critically tight, with still near-record low inventories and OPEC spare capacity and with supply soon set to turn supportive once again between the end of the US Strategic Petroleum Reserve sale and the expected decline in Russian production later this year.”

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