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Goldman says US$100 oil possible as record demand outpaces supply

Bloomberg
Bloomberg12/17/2021 03:11 PM GMT+08  • 3 min read
Goldman says US$100 oil possible as record demand outpaces supply
Demand for everything from gasoline, diesel and plastics is currently at a record level
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Oil at US$100 a barrel cannot be ruled out in 2023 as supply additions are expected to be too slow to keep up with record demand, according to Goldman Sachs Group Inc.

While the bank’s base forecast is for Brent to stay around US$85 next year and 2023, it could breach triple digits through either higher cost inflation for drillers, or if an unexpected supply shortfall forces prices to spike high enough to destroy demand, said Damien Courvalin, head of energy research.

The upside risks underscore why Goldman remains bullish on oil even after prices have rallied more than 40% this year. The bank sees the recent sell-off as overdone on unnecessary concerns about omicron-related restrictions and expects investors to buy the dip once asset managers reallocate money next year.

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