The quick reactions from global banks came after OPEC Plus decided to cut oil production by two million barrels, as Goldman Sachs raised its oil price forecast to $ 110 in the fourth quarter of 2022.
At the end of yesterday’s meeting, Wednesday, OPEC + members agreed Production was reduced by 2 million barrels per day in NovemberAccording to the group’s statement. The OPEC + communiqué also stated that the “declaration of cooperation” would be extended until the end of 2023, with ministerial meetings to be held every 6 months. The OPEC + ministerial monitoring committee will meet every two months to follow market developments.
Goldman Sachs’ oil team has been bullish for some time as it raised its fourth-quarter forecast from $ 10 to $ 110 a barrel.
“Brent crude will hit $ 100 a barrel faster than we expected” after the OPEC + move, analysts at Morgan Stanley said in a statement.
They added that the cut threatens to significantly restrict markets, although many depend on how prices for Russian oil production move once the EU embargo goes into effect.
Morgan Stanley raised its forecast for Brent crude oil to $ 100 for the first three months of 2023, keeping its forecast unchanged for the next three quarters.
“All the developments we’ve seen on the supply side at this point have pretty much set the stage for what we think will be higher prices later this year,” Goldman’s head of energy research Damien Corvalin told Bloomberg TV. Sachs.
UBS analysts, including Giovanni Stonovo, said in a statement that the oil market is expected to shrink further and the price of Brent crude will exceed $ 100 in the coming quarters.
He added: “The OPEC + cut will join the European ban on imports of Russian crude oil, coinciding with increased demand from gas to oil this winter, which will put pressure on the market.”
