Wall Street analysts see some scope for a recovery in oil prices next year, though perhaps not a significant rally.
Projections for global benchmark Brent in 2024 from five major banks average about $85 a barrel, compared with current levels of $77.
Citigroup Inc. holds the lowest estimate, at $75 a barrel, and Goldman Sachs Group Inc. the highest, at $92.
Overall, global oil demand is widely projected to grow further in 2024 from this year’s record levels, powered by China.
JP Morgan analysts expect that crude will average $83 a barrel next year. Morgan Stanley sees Brent averaging $85 a barrel next year, while Bank of America Corp. delivered more bullish forecasts for an average oil price of $90.
Goldman Sachs holds the most bullish outlook. It sees world oil demand rising by 1.6 million barrels a day next year and expects that core OPEC members will keep a tight leash on supplies.
This will leave global markets with a “modest deficit” and keep prices in a range of $80 to $100 a barrel, according to analysts led by Daan Struyven.
On the other hand, OPEC expects that world oil demand will increase by a vigorous 2.2 million barrels a day next year.
Source: Bloomberg
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