Goldman Sachs Forecasts Record Oil Demand Driving Price Surge

Goldman Sachs predicts that record oil demand will lead to significant deficits in the second half of 2023, driving crude prices higher. The bank expects demand to reach an all-time high, resulting in deficits of nearly 2 million barrels per day in the third quarter. Despite the increase in U.S. crude oil production, Goldman Sachs anticipates a slowdown in growth throughout the rest of 2023. The lack of agreement at the G20 energy ministers' meeting highlights the uncertainty surrounding long-term oil demand. Investors may require a premium to compensate for the elevated risk caused by this uncertainty.