Oil prices will reach $110 next year, says Goldman Sachs

Goldman Sachs Bank expects the price per barrel of Brent crude oil to reach $110 next year. This became known on Tuesday after a statement by Jeff Currie, head of commodities of the bank. It’s worth noting that Goldman Sachs previously made the same forecast.

Goldman Sachs believes that the largest and the most powerful oil companies will be able to prevent a further drop in oil prices and balance the market by taking serious measures.

It’s reported that OPEC+ will meet in Vienna on December 4 to decide on further oil production plans.

Despite the high forecasts for next year, oil prices in 2022 aren’t encouraging. As Currie notes, the price drop is due to three main factors. Firstly, the risks of recession, secondly, the weakening demand for oil in China amid re-imposed covid restrictions, and thirdly, the potential effects of limits on Russian oil.