The Strategist

Goldman Sachs downgrades oil prices forecast 2023

09/29/2022 - 10:31

On Tuesday, Goldman Sachs analysts cut their prediction for the price of oil in 2023 due to concerns over declining demand and an increase in the currency. However, due to continued supply issues, the long-term forecast for the oil market is still favorable.

Marco Verch Professional Photographer
Marco Verch Professional Photographer
Although a seasonally adjusted supply shortfall is anticipated in the fourth quarters of 2022 and 2023, the bank reduced its oil price projections for the following year by an average of $17.5 per barrel.

The average projection for the price of oil for the fourth quarters of 2022 and 2023 has been cut by $19 per barrel. In contrast to an earlier forecast of 2.5 million barrels per day, the bank expects that at present prices, the world's oil demand might rise by 2.0 million barrels per day in 2023.

According to them, a continued price fall would only be acceptable in the event of a severe economic downturn and a drop in world GDP.

Monday's nine-month low in oil prices was followed by a rise on Tuesday amid supply delays caused by Hurricane Ian in the Gulf of Mexico and a weaker dollar. However, Wednesday's pressure is back on oil prices.

The oil production of the cartel will stabilize at present levels by 2023, according to Goldman, who forecasts that OPEC won't raise its goal production targets this year.