Smartest Investors In The World Were WRONG!
Source: Pixaby
Conflicts and geopolitical uncertainty impacted oil markets in 2024, making for an unpredictable year. The price of Brent crude oil averaged roughly $80 per barrel throughout 2024, but it fell to the low $70s at times.
This year, Goldman Sachs Research forecasts Brent will trade in a range of $70-$85 per barrel and will average about $76. Prices will be heavily influenced by the rate of production in non-OPEC countries and potentially also by geopolitical factors — from sanctions to tariffs —according to Daan Struyven, co-head of Global Commodities Research and head of Oil Research.
OPEC+ oil producers (a group formed in 2016 with original OPEC members and 10 other oil-producing countries) have high spare capacity, which may limit an increase in prices. At the same time, the price elasticities of OPEC and shale supply, which can be increased and decreased to counteract swings in energy prices, are expected to limit the risk of a significant drop in the oil price.
This post originally appeared at Goldman Sachs.
Category: Brent Crude, Energy
