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Commodities

Factbox-Goldman cuts oil price forecasts for 2022, 2023 on demand concerns

(Reuters) - Goldman Sachs on Tuesday lowered its oil price forecasts for this year and 2023, citing expectations for lower demand growth, but retained its long-term bullish price outlook.

FILE PHOTO: The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly

“Despite outperforming cyclical assets this summer, oil prices finally succumbed to rising growth concerns, back to their lowest level since January. A strong USD and falling demand expectations will remain powerful headwinds to prices into year-end,” the investment bank said in a note. [USD/]

Oil prices fell more 1% on Wednesday, pressured by a strengthening dollar and crude storage builds that offset support from U.S. production cuts caused by Hurricane Ian. [O/R]

Goldman said the oil market has already priced in a significant slowdown in economic growth, and that Russian supply will decline into year-end when the EU embargo kicks in alongside the end of the globally-coordinated SPR release.

The following is a list of the latest brokerage forecasts for 2022 average prices per barrel for Brent and WTI (in $ per barrel):

Brokerage/Agency Brent WTI Date

Revised

2022 2023 2022 2023

Goldman Sachs

102.00 93.00 Sept 27

108.00 103.00

Barclays 103 103 99 99 Aug. 16

Fitch Solutions 105.0 85.0 100.0 81.0 June 14

Barclays 111.00 111.00 108.00 108.00 June 6

Citi Research 99.00 75.00 95.00 72.00 June 6

Commerzbank 99.00 91.00 96.00 88.00 May 25

*UBS 115.00 -- -- -- April 11

BofA Global Research 104.48 100.00 100.00 95.00 April 11

Barclays 100.00 88.00 96.00 85.00 April 8

Goldman Sachs 135.00 115.00 -- -- March 8

*UBS 105.00 -- -- -- March 4

Standard Chartered 85.00 Feb. 25

Commerzbank 84.00 78.00 81.00 75.00 Feb. 15

Barclays 92.00 89.00 Feb. 14

Barclays 85.00 82.00 Jan. 24

Morgan Stanley -- 95.00 -- 92.50 Jan. 20

*UBS 85.00 -- -- -- Jan. 19

Fitch Solutions 72.00 73.00 66.00 69.00 #Jan. 13

JP Morgan 88.00 84.00 Nov. 24

ABN Amro 79.00 76.00 Oct. 14

* indicates end-of-period forecast

# current as of given date, may not indicate date of revision

For a table of crude price forecasts as of May 31, see

Reporting by Bengaluru Commodities desk; Editing by Sherry Jacob-Phillips

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