Goldman Sachs has revised its oil price projections, citing concerns about the U.S. economic outlook and rising oil production from OPEC and its allies. The investment bank now expects Brent oil futures to trade between $65 and $80 per barrel, lowering its previous December target price by $5 to $71 per barrel. The bank forecasts an average price of $68 per barrel for next year. For New York oil futures, Goldman Sachs has set a December target price of $67 per barrel.
Reduced Oil Demand Growth Forecast
In addition to lowering its price expectations, Goldman Sachs has also cut its global oil demand growth forecast for 2023 by 18%. The updated forecast now anticipates an increase of 900,000 barrels per day, a significant reduction from previous estimates.
Oil Prices in Early Trading
Despite the adjusted forecasts, oil prices saw an uptick in early Asian trading on March 17. May Brent oil futures rose by 1.05%, reaching $71.32 per barrel. Meanwhile, April New York oil futures gained 1.09%, trading at $67.91 per barrel.
Goldman Sachs’ revised outlook reflects ongoing concerns over trade tensions and their potential impact on U.S. economic growth, which in turn affects global oil demand.
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