In 2020 Goldman Sachs d

In 2020 Goldman Sachs dares oil price forecast

The American investment bank Goldman Sachs has taken advantage of the slowly approaching New Year to review its oil price forecast and make a new forecast for the coming year.
For the oil price, a volatile year 2019 is slowly coming to an end. Since January, the price of a barrel of raw Brent has fluctuated between the bottom price of $ 52.50 and the highest price of $ 75.60. At present, the price of Brent oil has risen by more than 12 percent to $ 60.81
Goldman Sachs previously estimated that the oil price at the end of this year would be $ 62 a barrel. This prognosis is not far from the current reality. However, analysts from the bank have only once again examined the oil forecast. They now assume that the oil price may even be slightly higher by the end of the year.
Apathy in the market
As the American buisness channel CNBC reports, Goldman Sachs’ commodity experts are currently predicting that an improvement in fundamentals could lead to higher oil prices in the coming months, even though there is outright “apathy” in the market.
By that they mean that the oil futures on Brent oil have been trapped in recent weeks between deteriorated growth expectations and tensions in the Middle East.
They therefore think that their price forecast of 62 per barrel may not be the correct estimate. The headwind could decrease due to, among other things, higher transport prices. However, they have not issued a new price target, which the oil price should reach at the end of this year.
Shockwave can knock everything over
The Goldman analysts do look ahead to the coming year 2020. The prognosis is not spectacular, and investors may like ‘security’. “We assume that Brent oil will probably still be traded at prices of around $ 60,” said the report that was recently published.
This forecast only holds true if the concerns about global economic growth and geopolitical tensions do not go so far that a shock wave that you say is unleashed on the markets.
The risks that were seen at the investment bank for this year are still visible. But they do not have to be a problem in 2020, it is said. The continuing oil reductions from OPEC and the declining production of shale oil are expected to be in balance with the increase in oil production from outside OPEC and moderate growth in demand.

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