Record oil demand expected by the end of the year

Record demand for oil is expected by the end of the year, Goldman Sachs said in its forecast. According to the bank, the second half of 2023 will be marked by a significant oil shortage, and demand will reach an extremely high level, which will cause the price of Brent crude to rise to $86 per barrel.

Daan Struven, Head of Research at Goldman Sachs, emphasized that oil consumption in the US has increased significantly over the past year, reaching 12.7 million barrels per day. However, the growth rate will slow down in the second half of this year.

Despite the increase in oil production in the US, the number of oil rigs in the country has fallen to its lowest level in 16 months. According to a recent report by Goldman Sachs, their number has decreased by 15% compared to the peak at the end of 2022.

However, the absence of a deal following the G20 energy ministers' meeting in India creates "very significant" uncertainty about long-term oil demand, Struven said.

Recently, some G20 countries failed to agree on a phase-out of fossil fuels (coal, oil and gas) at the energy ministers' meeting. This complicates the transition to clean energy.

The International Energy Agency also predicted an increase in global oil demand by 2.4 million barrels per day in 2023, which exceeds previous forecasts. High demand for oil in the second half of 2023 will affect global oil prices and have a significant economic impact.