Goldman Sachs Revises OPEC+ Oil Production Expectations, Brent Crude Forecast at $74 - SEO Optimized
Goldman Sachs has adjusted its expectations for OPEC+ oil production, now anticipating three months of production increases starting from December rather than October, according to a note released on Friday. This adjustment comes after OPEC+ agreed to postpone a planned oil output increase for October and November, citing low crude prices as the reason.
Despite this delay, Goldman Sachs is maintaining its price range forecast of $70-85 per barrel and a December 2025 Brent forecast of $74 per barrel. The investment bank believes that the effects of a slight reduction in OPEC+ supply in the coming months will be offset by the softening demand in China and the quicker-than-expected recovery of Libya's supply.
Goldman Sachs warns of downside risks to its price range forecast due to high spare capacity and potential demand weaknesses from China and trade tensions. As a result, Brent crude futures fell to $71.06 a barrel on Friday, the lowest level since December 2021, while U.S. West Texas Intermediate crude futures dropped to $67.67, the lowest since June 2023.
In conclusion, this news highlights the ongoing volatility in the oil market and the importance of closely monitoring global production and demand trends. Investors should be aware of the potential impact on oil prices and adjust their investment strategies accordingly to navigate these uncertain times in the energy sector.