Goldman Sachs estimates the price of crude oil in 2022 to reach $ 135 per barrel

The spot market price per Brent barrel will reach $135 in 2022 and $115 in 2023 – predicts Goldman Sachs, whose earlier forecasts included prices of $98 and $105, respectively. According to GS, oil markets may face one of the biggest supply shocks in history.

According to the analysis by Goldman Sachs, the armed conflict in Ukraine and the related sanctions imposed on Russia may trigger one of the largest supply shocks in history. In their opinion, we are already seeing the greatest disruptions in the market since the Kuwait war in 1990.

GS expects Western countries to try to avoid this by releasing strategic oil reserves by the US, increasing production by major OPEC countries, or even potentially lifting sanctions on oil imports from Iran and Venezuela.

In the opinion of GS analysts, all these measures could help to balance the market, but it would leave the global oil market without a buffer, which would still require constraining demand through higher prices. The key factor will be the scale of the reduction in supply from Russia and the attitude of China.

(PAP)