- Analytics
- News and Tools
- Market News
- Goldman Sachs slashes its Brent price forecast on Biden’s oil reserve release
Goldman Sachs slashes its Brent price forecast on Biden’s oil reserve release
US President Joe Biden's 180mn barrel release would help the oil market rebalance in 2022, increasing supply by 1 million b/d for six months, analysts at Goldman Sachs said in the latest note.
Key quotes
“Dropped its H2 2022 Brent forecast by $15/bbl to $120/bbl.”
“The extra supply would "not resolve the structural supply deficit, [that has taken] years in the making."
"In fact, lower prices in 2022 would support oil demand while slowing the acceleration in shale production, leaving, for now, a deficit in 2023, as well as the likely requirement to refill the SPR."
“The release, in lowering prices, would therefore lower the incentive for shale producers. This is microeconomics 101 so it should not be news to anyone.”
“Could raise its 2023 Brent oil prices $5/b above its current $110/b forecast for the year, reflecting higher demand and lower shale supply exiting 2022.”
Related reads
- US Pres. Biden team weighs a massive oil release to combat inflation, oil heavily offered
- WTI plunges below $100.00 on Biden’s 180 million barrel oil release
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
