Goldman Sachs Sees Crude Oil to Hit $100 as Demand Outweighs Steeper Supply

Crude oil at $100 again came at limelight after Goldman Sachs said oil price could reach $100 in 2023 as demand outweighs steeper supply.

However, the bank said Brent to stay around $85 in 2022 and 2023. The bank added Brent could breach triple digits thought either higher cost inflation for driller or unexpected supply shortfall, according to Mr. Damien Courvalin, head of energy research , as reported by Bloomberg.

Goldman’s view on bullish oil can be pointed towards oil prices ralling more than 40% this year.

“There’s insufficient supply in the face of strong demand,” Mr Courvalin said in a call with reporters on Friday (Dec 17), as reported by Bloomberg.

“Oil prices have to be higher to overcome the higher cost of capital to fund projects.”