Brent oil closed September at USD 95.3 (+9.7% m/m), driven by Saudi Arabia and Russia extending their production cuts by the end of 2023, - according to the document published by Galt And Taggart.
As of the document, the recent rally raised the prospect of USD 100-a-barrel oil, but few are convinced of its sustainability in the near term.
Goldman Sachs forecasts U.S. crude price to average US$ 88 in 4Q23, while Barclays expects Brent to trade at USD 92 in 4Q23 (US$ 84 average in FY23).
Analysts are convinced the demand growth is slowing (Americans fly and drive less, China starts to use own crude inventories, speculators are maxed out on long positions) and supply is increasing with Saudi Arabia likely to intervene if prices rise too high.
