Goldman Sachs $100 / barrel oil forecast is getting trotted out again | Forexlive
I seem to be posting the ‘Goldman Sachs forecast $100 oil’ around once a week or so.
This, for example from February 5:
They’re at it again, same dollar number forecast. Not that there is anything wrong with that, just don’t treat it as new news.
In a nutshell, crude prices should rise to $100/bbl by the end of the year due to
- underinvestment
- shale constraints
- OPEC discipline
- and strong Chinese demand
From the horse’s mouth, GS say $100 by the end of the year is on the radar:
- “as the market pivots back to deficit with underinvestment, shale constraints and OPEC discipline ensuring supply does not meet demand”
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Its been heavy going for the stuff:
While the slide for equities on Tuesday had fingers pointing at strong economic data likely to incite further Federal Reserve rate hikes the moribund oil price has fingers pointing at a weaker economy weighing on demand. Go figure.