Oil prices likely to hit $100/barrel in 2024, Goldman Sachs warns

Oil prices are expected to reach $100 a barrel in 2024 on supplies-related risks if the political turmoil escalates in the Middle East, Goldman Sachs strategists said in a note.

The impact of supply disruptions could be limited, as the Middle East dominates a smaller percentage of global supplies compared with the 1970s and 1980s. So far, Hamas-Israel war has a little impact on oil prices.

The bank's strategists added that oil prices are, however, volatile and could rise temporarily on unrest concerns as was the case at the start of Russia-Ukraine war in 2022.

OPEC's production policy and discipline will likely support oil prices in 2024, Goldman Sachs noted.