Goldman Sachs predicts record oil demand by the end of the year

Goldman Sachs expects record demand in the oil market in the second half of 2023, which will lead to an increase in Brent crude oil prices to $86 per barrel. About it informs CNBC.

“We expect a fairly large deficit in the second half of the year, reaching nearly 2 million barrels a day in the third quarter, as demand picks up to an unusually high level,” Daan Struven, head of research at the bank, said.

According to the bank’s forecast, Brent crude will rise from just over $80 per barrel to $86 per barrel by the end of the year. As of 13:02 Moscow time, the price of this mark was $81.6 per barrel, according to the data of the Moscow Exchange. According to the London Stock Exchange ICE at 13:16 Moscow time, the price of this brand was $81.7 per barrel.

U.S. crude oil production has risen significantly over the past year to 12.7 million barrels a day, Struven said. Growth rates will slow down during the rest of this year, the expert added.

At the same time, the number of oil rigs in the US recently reached the lowest level in the last 16 months. Their numbers are down 15% from their peak at the end of 2022, Goldman Sachs said in its latest report.

Struven suggested that the lack of agreement following the G20 energy ministers’ meeting points to “very significant” uncertainty about long-term oil demand.

Several G20 countries at a meeting of energy ministers in India over the weekend did not agree to the phase-out of fossil fuels (coal, oil, gas), which complicates the transition to clean energy.

The International Energy Agency in June predicted an increase in global oil demand in 2023 by 2.4 million barrels per day, which exceeds the data of the previous forecast.