Brent crude futures prices are currently hovering around $90 per barrel
Increasing expectations of a rise in demand for oil during 2024 led the American bank Goldman Sachs to fix its expectations for the price of Brent crude at the level of 100.Dollar per barrel.
Brent crude futures prices are currently hovering around $90 per barrel, while US West Texas Intermediate crude is at $86.per barrel.
And explain Investment Bank The American newspaper said on Monday that the price of Brent crude oil reaching the level of $100 per barrel led to expectations of strong growth in global demand for oil in 2024 by 1.5 million barrels per day.
The bank said, in a research note, that the basic scenario assumes that there will be no additional negative impacts on supplies due to the escalation of geopolitical conditions.
The bank indicated that among the reasons that prompted it to expect $100 per barrel was the assumption that the high spare capacity would lead to OPEC+ boosting production.
The bank expected an increase in oil supplies from the eight OPEC member countries, which announced production cuts
The OPEC+ alliance includes member states of the Organization of the Petroleum Exporting Countries (OPEC) and independent producers, including Russia, and the alliance has been reducing production since 2022 to maintain the stability of energy markets.
The US bank added that its OPEC model indicates that increasing production has become a likely possibility with the decline in commercial oil reserves in OECD countries.
The price of Brent crude oil rose to its highest level in almost 6 months at $91 per barrel, according to the bank’s research note, which said that the market expects stronger demand for demand.
The bank added that updated market expectations regarding oil demand fueled the rise in crude prices.
The International Energy Agency expects demand for oil to rise in 2024 due to strong data on demand for crude from outside China and raising GDP expectations, according to Goldman Sachs.
Demand sentiment in investor talks has shifted from a belief in decline to expectations of an increase.
The bank stated that oil prices also rose after the announcement of strong data, including surveys of manufacturing activity in China, the United States and India, as well as employment numbers in the United States.
