Meaningful news from the oil market for the distant and near future
Tension and fluctuations in the oil market are normal and part of the world’s economic and financial equations.
These fluctuations naturally affect the livelihoods of citizens and impact oil and energy-importing countries, while the ups and downs in oil revenues are also crucial for oil-exporting countries and their people’s livelihoods.
However, the past few months have been a period of serious struggle over the distant and near future of the oil market and the price negotiations of black gold. One of the most important pieces of news in this regard in recent days has been the announcement of new price forecasts by experts from Goldman Sachs and Morgan Stanley.
In its latest report, Goldman Sachs has revised its forecasts for the short-term outlook of oil prices, reducing its average price prediction by $5.
A significant increase in U.S. oil production covers some of the most important seasonal demand increases, such as the rise in autumn and winter demand in the market, and largely curbs the shock caused by seasonal changes.
Morgan Stanley has also made a similar forecast, predicting that the ceiling of oil prices in 2024 will ultimately lead to a situation of definite surplus oil in the markets by 2025.
The increase in production by OPEC Plus countries, despite previous agreements to cut production, is certain. Additionally, new and increasing production in non-OPEC countries will flood the market. Exxon, in response to the current situation and more importantly, in an effort to address the forecasts of the International Energy Agency, has released a new report to warn that oil will still have demand.
Without considering the supply and demand ratio, this company estimated a 15% reduction in global oil production per year, which is double the agency’s estimate. This report, prepared to create optimism among oil producers, does not align with recent events.
Saudi Arabia has been forced to reduce its oil prices for sale in Asia due to decreased demand in China and other East Asian countries. The decline in demand in China is a subject seriously considered by Morgan Stanley and Goldman Sachs in their forecasts.
The most important point in this context is the increase in oil and gas production by Chinese companies both domestically and in other countries, accompanied by record-breaking production and revenue for these companies.