Oil prices will surge to $125 a barrel next year despite the G7's cap on Russian crude, Goldman Sach

[RandySF]

Oil prices are likely to soar to $125 a barrel in 2023, despite the G7's latest agreement to set a price cap on Russian crude, Goldman Sachs said.

Any price cap will be "bearish in theory, bullish in practice" for oil prices, due to Moscow potentially responding by slashing exports to G7 countries, the bank warned on Friday.

"Consistent with actions taken in the natural gas market, Russia could opt to retaliate, cutting G7 buyers off and shutting in production, thereby elevating global prices and its own revenues even higher," a team of strategists led by Goldman Sachs's head of energy research, Damien Courvalin, said. "Today's announcement does not change our bullish forecast for oil prices."

The G7 - which includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States - announced Friday that it would implement a price cap on Russian oil by December 5.


https://markets.businessinsider.com/news/commodities/oil-price-outlook-russia-crude-g7-price-cap-goldman-sachs-2022-9

[Better Days Ahoy]

1. In the meantime, I'll enjoy my Costco gas

$3.29 as of yesterday. Should be below $3.00 by Roe-vember. Good article!

[DFW]

2. Sooner or later, the same will happen like with Iranian energy

I have an Iranian friend who lives here in Germany. He still has lots of family back in Iran. He says the sanctions there are real on paper, but that in reality, Iran will (and DOES) do business with every other country in the world except Israel. The invoicing and shipping are awkward, as no one dares be seen violating the sanctions, but they get violated on an ongoing basis.

At some point, if it hasn't been already reached, Russia will find a way to have the same arrangement, especially if Putin should have a "sudden health issure" that mandates his "retirement." Or his funeral. The West needs the energy, and Russia needs the western currency. At some pont, there will be a quiet meeting somewhere. "Demand? I'd like you to meet my friend Supply."

Where there's a will, there's a Washignton. A few trillion of them, in fact.

[Yo_Mama_Been_Loggin]

3. I'm sure Goldman Sacks America is hoping for such

[durablend]

4. Weren't they saying it would get to $300 this year?

[multigraincracker]

5. Could this be a...

pump and dump of oil stocks by the bank?