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Oil prices may hit $100 with record demand in 2023: Goldman

There is insufficient supply in face of strong demand, analyst says

Crude oil prices could hit $100 per barrel due to record high demand in 2023 despite the latest omicron coronavirus variant, according to an analyst from Goldman Sachs.

“We have already had record high demand before this newest variant, and now you are adding higher jet demand, and the global economy is still growing,” said Damien Courvalin, head of energy research at the US-based multinational investment bank and financial services firm, on Thursday.

“We have to wait for this wave to pass, but that suggests that international travel should recover further next year,” he told at an energy outlook meeting.

Courvalin said he expects the price of international benchmark Brent crude to average $85 per barrel next year, but there is an upside risk it could be $10 higher than that level.

“You see how we will average a new record high in demand in 2022, and then again in 2023,” he said.

On the production, Courvalin said there is “insufficient supply in the face of strong demand.”

The analyst noted that it is “quite conceivable” that crude prices could surpass the $100 level under some circumstances, as the global oil market is “pricing in a wall of worries.”

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