Goldman Sachs Sees Crude Oil Prices at Triple Digits by End-2024

SEATTLE (Oil Monster): The analysts at Goldman Sachs, in a latest research note, stated that crude oil prices are likely to soar into the triple digits by the end of the next year. The voluntary output cuts by major players like Russia and Saudi Arabia could see Brent crude prices hitting $107 per barrel, they said.

The crucial thing to watch out for is whether the OPEC+ group of oil exporting countries will decide to continue with the production cut of 1.7 million barrels per day announced in April through the rest of 2024, instead of reversing at least a portion of it. It must be noted that the demand is likely to touch a record high of 102 million barrels per day by end-2023, as per estimates provided by the International Energy Agency (IEA).

The Goldman Sachs research note also mentions a base case estimate for crude oil prices at $93 per barrel for end-2024.

The rising oil prices could easily become a key election issue in the next year’s U.S. Presidential election campaign. It must be noted that spiralling oil prices will have their impact on other energy commodities such as heating oil, natural gas and electricity. The predictions come at a time when economists predict that the U.S. is likely to slip into a technical recession by Q4 this year.

Meantime, the U.S. administration is committed to do everything to ensure lower gas prices, said Jake Sullivan, National Security Advisor.