In a recent note, Goldman Sachs has increased its Brent crude oil price forecasts for the second half of 2024 and 2025. The bank anticipates that the elevated geopolitical risk premium currently affecting oil prices will moderate in the coming months.
In an exclusive interview, Wes Edens, founder of Brightline and New Fortress Energy, shares his insights on the energy markets, the impact of geopolitical risks, and his belief that the Federal Reserve will lower interest rates later in the year.
According to Citi, the energy sector is expected to maintain its strong performance due to elevated oil prices driven by geopolitical risks. The sector has outpaced the broader market this year, driven by rising energy demand and production cuts from OPEC+. While the oil market has cooled following tensions between Israel and Iran, prices remain significantly higher than last year. Citi analysts foresee continued support for oil prices in the short term due to global economic growth and geopolitical uncertainties, despite reduced demand growth projections for 2025.
