Goldman Sachs has indicated that oil prices are expected to maintain a steady trajectory, projecting Brent crude to average $86 per barrel in 2024 and $84 per barrel in 2025. This forecast is attributed to a predicted balance between global oil demand and supply.

The investment bank anticipates that demand will grow by 1.5 million barrels per day (bpd) in 2024, with a further 1.1 million bpd increase in 2025. On the supply side, Goldman Sachs forecasts a reduction in non-OPEC+ supply growth to 0.9 million bpd in 2024, down from 1.6 million bpd in 2023. They also project OPEC+ spare capacity to remain elevated at 4.3 million bpd next year, providing a buffer against potential price surges.

Goldman Sachs highlighted that while geopolitical risks could temporarily impact prices, the market fundamentals are expected to keep Brent crude within a range of $75-$90 per barrel for the near to medium term.

Key Takeaways

• Goldman Sachs forecasts Brent crude to average $86/bbl in 2024 and $84/bbl in 2025.
• The outlook is based on an expected balance between global oil demand and supply.
• Global oil demand is projected to increase by 1.5 million bpd in 2024 and 1.1 million bpd in 2025.
• Non-OPEC+ supply growth is expected to slow to 0.9 million bpd in 2024.
• OPEC+ spare capacity is anticipated to remain high at 4.3 million bpd in 2025.

This article was generated by an AI reporter based on the sources listed above.