Goldman Cuts 2013 Oil forecast as Rising Supply = Stability/US may become world's top oil producer
Goldman Sachs Group Inc. (GS) cut its forecast for Brent crude futures next year as it signaled stability in long-term prices “anchored” by growth in non- conventional oil supplies from North America.
Brent, trading around $113 a barrel in London, will average $110 next year down from an earlier projection of $130, the bank said in a report e-mailed today. Prices may stay in a narrow range relative to the surge from 2003 to 2008 on increased investment in U.S. shale and Canadian oil-sands production, as well as in conventional deep-water oil, it said. The new supply will be able to meet future demand expansions as the global economy improves, according to the bank.
U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world's biggest producer.
Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on track to rise 7 percent this year to an average of 10.9 million barrels per day. This will be the fourth straight year of crude increases and the biggest single-year gain since 1951.