There is significant news from the oil market for the near and distant future.
Tension and fluctuations in the oil market are normal and part of the global economic and financial equations.
These fluctuations naturally have an impact on the livelihoods of citizens and affect oil and energy importing countries, while the rise and fall of oil income is crucial for exporting countries and their people’s livelihoods.
However, recent months have been a period of serious battle over the near and distant future of the oil market and the price movements. One of the most important news in this regard has been the recent announcements of fresh oil price forecasts by experts from Goldman Sachs and Morgan Stanley.
Goldman Sachs has revised its near-future oil price outlook in its recent report and reduced price predictions by an average of $5.
The significant increase in U.S. oil production covers some of the most important seasonal demand increases, such as the growth in autumn and winter demand in the market, and significantly mitigates the fluctuations resulting from seasonal changes in the market.
Morgan Stanley has also made a similar prediction, forecasting a reduction in the ceiling price of oil in 2024 ultimately leading to a situation of surplus oil supply in the markets by 2025.
The increase in oil production by OPEC+ countries, despite previous agreements to reduce production, is a definite matter. Regardless of that, new and increasing productions in non-OPEC countries will accumulate in the market. Exxon, in response to the current situation, and more importantly, in an effort to address the International Energy Agency’s forecasts, has recently released reports to warn that oil will still be in demand.
The company has estimated a 15% reduction in global oil production per year, regardless of supply and demand ratios, which is twice the agency’s estimate. This report, prepared to create hope among oil producers, does not align with recent events.
Saudi Arabia has been forced to reduce the price of its oil for sale in Asia due to the decrease in demand in China and other East Asian countries. The decrease in demand in China is a matter that analysts at Morgan Stanley and Goldman Sachs have taken seriously in their estimates.
Another important point is the increase in oil and gas production by Chinese companies in their own country and other countries, which has been accompanied by record-breaking production and revenue for these companies.
