June 22, 2024
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Goldman Sachs Lowers Expectations for OPEC+ Production Increase

Goldman Sachs on Wednesday revised its forecast, shifting away from anticipating OPEC+ to announce a partial rollback of voluntary production cuts in June.

Citing unexpected increases in inventories, the bank’s model now projects only a 37% likelihood of a production hike decision next month.

According to Reuters, the bank elaborated that while OPEC+ communication hasn’t definitively settled on a course of action, it anticipates Saudi Arabia’s crude supply to hold steady at 9 million barrels per day (mb/d) in July, down from the previous estimate of 9.2 mb/d.

Despite these adjustments, Goldman Sachs maintains its outlook for Brent crude futures within the $75 to $90 per barrel range across most scenarios. Additionally, the bank forecasts an average of $82 per barrel for Brent crude in 2025, as stated in a recent note.

On Wednesday, Brent crude settled below $84 per barrel, reflecting ongoing market dynamics.

Russian Deputy Prime Minister Alexander Novak disclosed on Tuesday that discussions regarding an oil output increase by OPEC+ had not taken place.

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