Goldman Sachs predicts crude oil prices in the coming years!

Goldman Sachs predicted in a research note issued yesterday, Thursday, that the average price of Brent crude will reach around $80 per barrel in 2024, despite challenges related to supply shortages and geopolitical uncertainty. The bank noted that the upcoming year will witness a surplus in supply of about 0.4 million barrels per day.

The bank explained that Brent crude prices will remain within a range of $70 to $85 per barrel, while there is a surplus in production capacity, which limits any sharp increases in prices. It also confirmed that OPEC and the supply of shale oil from the United States will play an important role in avoiding any significant decline in prices.

In the near term, the bank expects prices to rise possibly exceeding $85 per barrel in the first half of 2025 if Iranian supply decreases by about one million barrels per day due to the imposition of stricter sanctions on Iran.

In the long term, the bank maintained its forecast that the price of Brent crude will reach $76 per barrel in 2025, while revising its forecast for 2026 down to $71, expecting a surplus in supply of about 0.9 million barrels per day.

Regarding future oil demand, Goldman Sachs confirmed that global demand will continue to grow over the next decade, driven by increased energy demand and sustained economic growth, alongside challenges related to decarbonization in the aviation and petrochemical sectors.

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