The reactions and expectations of investment banks continued after the establishment of the The “OPEC +” alliance to reduce production by two million barrels per day From next November.
Goldman Sachs said supply developments pave the way for higher prices at the end of 2022 and the price of Brent crude oil will rise to $ 110 per barrel in the fourth quarter of 2022.
Morgan Stanley expected Brent crude to hit $ 100 a barrel in the first quarter of 2023 following the “OPEC +” move.
UBS said the oil market is expected to shrink further and the price of Brent crude oil will rise above $ 100 a barrel in the coming quarters.
UBS attributed this to the recent cut in OPEC +, along with the European ban on imports of Russian crude oil, the possible end of the Organization for Economic Cooperation and Development’s withdrawal from strategic oil reserves and the expected shift in demand from gas to oil. for this winter.
Meanwhile, ING Groep NV Bank said the OPEC + decision is enough to significantly change the market equilibrium next year, adding that there is a clear trend for the price of Brent crude to rise above the the bank’s previous expectations of $ 97 a barrel next year.
RBC Capital Markets said it does not plan to release huge amounts of new US strategic reserves in the short term.
ESAI Energy said the OPEC + agreement will lead to a moderate price increase due to an actual surplus in the market.
