Meaningful news from the oil market for the distant and near future
Tension and fluctuations in the oil market are common and are part of the world’s economic and financial equations.
These fluctuations naturally affect the livelihood of citizens and impact oil and energy-importing countries. On the other hand, the rise and fall of oil revenues are crucial for oil-exporting countries and their people’s livelihood.
However, the recent months have been a period of serious battle over the distant and near future of the oil market and the negotiations on the price of black gold. One of the most important news in this regard in recent days has been the announcement of new forecasts for oil prices by experts from Goldman Sachs and Morgan Stanley.
In its latest report, Goldman Sachs has revised its forecasts for the near future outlook of oil prices, reducing the predicted prices by an average of 5 dollars.
The significant increase in U.S. oil production sufficiently covers some of the major seasonal demand increases, which is the growth in autumn and winter demand in the market, and largely controls the market shock caused by seasonal changes.
Morgan Stanley has also made a similar prediction. The reduction in the oil price ceiling in 2024 will eventually lead to a situation of definite excess oil in the markets in the year 2025.
The increase in production by OPEC Plus countries, despite previous agreements to reduce production, is certain. Besides, 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 International Energy Agency’s forecasts, has released a new report to warn that there will still be demand for oil.
Without considering the supply and demand ratio, this company estimates a 15 percent reduction in global oil production per year, which is double the agency’s estimate. This report, which was prepared to create hope among oil producers, does not align with recent events.
Saudi Arabia has been forced to reduce its oil price for sale in Asia due to decreased demand in China and other East Asian countries. The decrease in demand in China is an issue that Morgan Stanley and Goldman Sachs experts have seriously considered in their forecasts.
The most important point in this context is the increase in oil and gas production by Chinese companies within their own country and in other countries, which has been accompanied by record-breaking levels of production and revenue for these companies.
