Goldman Sachs Predicts Oil Surge

Goldman Sachs anticipates a surge in global oil demand shortly, driving crude prices higher. The bank's head of oil research, Daan Struyven, predicts significant deficits of almost 2 million barrels per day in the third quarter as demand reaches an all-time high. Goldman Sachs foresees Brent crude oil prices to rise from just above $80 per barrel to $86 per barrel by the end of the year. Struyven acknowledged the significant rise in U.S. crude oil production to 12.7 million daily barrels. Still, he foresees a slowdown in growth for the rest of 2023, with supply increasing by only around 200 barrels per day sequentially. The lack of consensus on the phasing down fossil fuels following the G20 energy ministers' meeting in India has led to heightened uncertainty about long-term oil demand, potentially prompting investors to seek a premium to offset the risks associated with volatile demand.