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Goldman Says $100 Oil Possible as Record Demand Outpaces Supply

  • Collapse in upstream investments seen; bank’s base case at $85
  • Record gasoline, diesel, plastic use to be smashed in 2022/23

Oil at $100 a barrel cannot be ruled out in 2023 as supply additions are expected to be too slow to keep up with record demand, according to Goldman Sachs Group Inc.

While the bank’s base forecast is for Brent to stay around $85 next year and 2023, it could breach triple digits through either higher cost inflation for drillers, or if an unexpected supply shortfall forces prices to spike high enough to destroy demand, said Damien Courvalin, head of energy research.