Goldman Sachs Drops Oil Price Forecast
Sep 27, 2022
Goldman Sachs cut its oil price forecast on Tuesday on the deteriorating global economic outlook—although it remained bullish on oil.
Goldman said it remained bullish, anticipating that oil prices would likely rise from the current levels given the state of the “critically tight” market. The group cited the strong dollar and weakening demand forecast, which will “remain powerful headwinds to prices into year-end. Yet, the structural bullish supply set-up — due to the lack of investment, low spare capacity and inventories — has only grown stronger, inevitably requiring much higher prices.” Goldman Sachs analysts Damien Courvalin and Callum Bruce said in a note to clients on Tuesday.
