Suncor Energy
According to a memo from the bank's experts, Goldman Sachs has modified its prediction for oil prices in the second half of 2022 and in 2023.
Goldman Sachs estimates that in the worst-case scenario, the fair price of Brent oil will be between $110 and $120 a barrel. According to Bloomberg, the range border is $15 per barrel lower than the bank's previous projection, which forecasted an average price of $135 per barrel.
Investor concerns about the fundamentals of the oil market—expectations for an increase in production and a decline in demand—have kept oil prices below $100 per barrel. They account for a number of market situations that are progressively becoming more prevalent in their negative setting.
Among these factors are listed the maintenance of oil supplies from Russia at a level close to normal, along with an increase in production of 0.5 million barrels per day from Saudi Arabia and the United Arab Emirates, a slowdown in economic activity in Europe due to high energy prices and inflation, and a less severe decline in GDP elsewhere in the world. Bank industry insiders also blame a lack of liquidity and technical issues for this week's "sell-off."
source: forbes.com
Goldman Sachs estimates that in the worst-case scenario, the fair price of Brent oil will be between $110 and $120 a barrel. According to Bloomberg, the range border is $15 per barrel lower than the bank's previous projection, which forecasted an average price of $135 per barrel.
Investor concerns about the fundamentals of the oil market—expectations for an increase in production and a decline in demand—have kept oil prices below $100 per barrel. They account for a number of market situations that are progressively becoming more prevalent in their negative setting.
Among these factors are listed the maintenance of oil supplies from Russia at a level close to normal, along with an increase in production of 0.5 million barrels per day from Saudi Arabia and the United Arab Emirates, a slowdown in economic activity in Europe due to high energy prices and inflation, and a less severe decline in GDP elsewhere in the world. Bank industry insiders also blame a lack of liquidity and technical issues for this week's "sell-off."
source: forbes.com