Goldman Sachs Raises Brent Crude Forecast to $100, Poses Economic Challenges for Nigeria

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Goldman Sachs has revised its 12-month ahead forecast for Brent Crude oil prices, projecting $100 per barrel, up from the previous estimate of $93. This adjustment is attributed to stronger inventory draws resulting from extended OPEC+ cuts and global demand growth. While this forecast is positive for the oil market, it presents economic challenges for Nigeria. The country faces rising diesel prices, reaching approximately N900 per litre in major cities. Additionally, Nigeria’s inability to meet production quotas due to declining output poses a hurdle to increasing crude oil revenue.

Key Points:

  • Goldman Sachs has increased its 12-month ahead Brent Crude forecast to $100 per barrel, citing sharper inventory draws.
  • Lower OPEC oil supply and heightened demand are expected to outweigh the increase in U.S. oil production.
  • The OPEC+ group’s cuts, led by Saudi Arabia, and rising demand are anticipated to maintain Brent prices between $80 and $105 per barrel in 2024.
  • Despite the positive outlook, Nigeria grapples with economic challenges, including subsidized petrol prices and governance cost concerns.

Analysis: While the upward revision in Brent Crude prices is a positive indicator for the global oil market, Nigeria faces complex economic dynamics. The discrepancy between rising international oil prices and local petrol costs, potentially influenced by subsidies, raises fiscal considerations. Nigeria’s commitment to meeting production quotas amid declining output is crucial for optimizing crude oil revenue.

Background: Nigeria, a significant player in the global oil industry, has been navigating challenges related to production capacity and market dynamics. The country’s ability to effectively manage its oil resources is pivotal for economic stability and growth.

Published by: Market News Nigeria (


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