Goldman Sachs thinks that OPEC will limit the decrease in oil prices in 2023

On Tuesday, Goldman Sachs representatives said that OPEC's ability to control the prices without hitting demand might reduce the risk of a decrease in oil prices in 2023. 

According to Goldman Sachs forecasts, in 2023, global oil demand will increase by 2.7 million bpd. It will provoke a deficit in the market in the second half-year and will cause the growth of prices for black gold to $105 per barrel in the fourth quarter.

Goldman Sachs admits that this tightening should allow OPEC to cease the October production cut in the second half-year. However, if the market turns out to be weak, OPEC might continue to reduce the production cut as it was in October. Besides, the organization might cut production even more, considering its significant pricing power. 

The U.S. Energy Information Administration released the monthly Short-term Energy Outlook. This document separately mentioned that in 2024, the global consumption of liquid fuels (jet fuel, diesel, gasoline) will hit the record.