Crude Oil Prices Reach 2023 All-Time High at $97 per Barrel

On Thursday, September 28,  Brent Crude oil rose to $97.2 per barrel making it to reach its highest level since it climbed in November last year.

The surge in oil prices was driven by the rise in demand and a marked decrease in crude oil supplies.

On the other hand, Saudi Arabia and Russia one of the biggest oil-producing countries recently announced an oil production cut which would continue till the end of 2023, with monthly reviews to analyse the situation.

It was in the first week of September that the benchmark surpassed $90 per barrel for the first time in 10 months on the back of the voluntary cuts by Saudi Arabia and Russia.

However as the Organization of Petroleum Exporting Countries (OPEC) schedules a meeting on October 4, market analysts expect that a thorough investigation will be conducted on market dynamics and a look at the supply levels and prices put out by producers.

Last week, Goldman Sachs raised its 12-month ahead forecast for Brent Crude oil prices to $100 per barrel from $93 previously expected on more robust inventory draws with the extended OPEC+ cuts and global demand growth—the report shows.

“We have nudged up our 12-month Brent forecast from $93 a barrel to $100 a barrel as we now expect modestly sharper inventory draws,” analysts at Goldman Sachs wrote in a note on Wednesday, as seen by Reuters.

The main reason for the rise in Brent crude oil prices is that as the lower OPEC oil supply continues, the higher demand will more than offset the rise in US oil production.

The reduction by the OPEC+ group led by Saudi Arabia and increased demand would allow the cartel and its partners to preserve Brent prices between $80 and $105 per barrel in 2024, according to the Wall Street Bank—the report shows.