Goldman Sachs is betting on an OPEC+ cut in oil production and indicates it is positive on oil prices in 2023, forecasting Brent prices at $110. This is what Jeff Currie, global head of the commodities division of Goldman Sachs said.
The medium-term outlook on oil prices, for 2023, is “very positive” and “Goldman Sachs confirms the outlook for a Brent crude at $110 a barrel”, said Currie, however admitting the presence of “a lot of uncertainty ”, moving forward.
Oil prices today marked a solid rise: the WTI contract traded in New York jumped by 1.77% to $78.61 a barrel, while Brent rose by more than 2%, above $85.
Oil prices plunged yesterday: the WTI contract traded on New York’s Nymex plunged to an intraday low of $73.82, the lowest value since December 27, 2021, while Brent slid to $81.16 a barrel, to the minimum since last January 11th.
The two contracts practically eliminated the earnings collected during 2022.
Weighing on the prices was the fear that China will persist in its zero tolerance policy towards Covid – the Zero Covid Policy – characterized by severe restriction and lockdown measures: a policy that slows down the growth of its economy. China is also the largest importer of crude oil in the world.
The meeting of OPEC+, an alliance between OPEC countries such as Saudi Arabia and non-OPEC countries such as Russia, is expected in Vienna on 4 December.