US President Joe Biden’s release of 180 million barrels would help rebalancing the oil market in 2022increasing supply by 1 million barrels for six months, Goldman Sachs analysts said in their latest note.
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“We lower our Brent price forecast for the second half of 2022 by $15/barrel to $120/barrel.”
‘The extra offer’would not solve the structural supply deficit, [que ha tardado] years to create.
“In fact, lower prices in 2022 would support oil demand while slowing the acceleration of shale production, leaving, for now, a deficit in 2023as well as the likely requirement to refill the SPR.”
“Therefore, liberalization, by lowering prices, would reduce the incentive for shale producers. This is basic microeconomics so it shouldn’t be news to anyone.”
“We could raise the Brent oil price forecast for 2023 by $5 above the current forecast of $110/barrel for the year, reflecting higher demand and lower shale supply than in 2022.”
Source: Fx Street
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