By December this year, North Sea Brent oil will likely cost around $95 a barrel. The dynamics will be affected by the plans of many OPEC+ countries to reduce daily production of raw materials, including Russia and Saudi Arabia. informs Bloomberg cited revised estimates by analysts of the American investment bank Goldman Sachs.
Prior to that, experts at the credit institution had estimated the cost of Brent oil to be around $90 per barrel by December of this year. He notes, however, that the “unexpected” decision by a number of OPEC+ countries to reduce daily production of raw materials led to a change in the previous forecast.
“OPEC+ has a very significant pricing power compared to the past. Unexpected downsizing is in line with the new doctrines of being proactive. <….> Combined with continued production cuts in Russia, this led the Wall Street giant to raise its Brent crude forecast to $95 a barrel from $90 this December.
At the same time, Goldman Sachs analysts changed their forecasts for December 2024 Brent oil prices. By then, the note concludes, the stock price of North Sea crude oil will be around $100 per barrel, not $95 as previously expected, according to the updated forecast.
April 3 Bloomberg reportedHe said the decision by many OPEC+ countries, including Russia and Saudi Arabia, to cut oil production was a “big surprise” for the global commodity market. In this context, in the foreseeable future, the world economy may face a recession due to rising energy prices and further tightening of monetary policy by leading Central banks.