Goldman Sachs expects OPEC+ to announce a second consecutive supply increase for June due to modest compliance from Kazakhstan and lower-than-expected OECD inventories. The bank now forecasts a 410,000-barrel-per-day (bpd) increase, three times the level agreed in December.
The expected increase is attributed to Saudi Arabia’s ability to handle lower oil prices and the market’s central expectation having converged to this figure. Oil prices fell 8% this week, with Brent crude settling at $61.29 a barrel on Friday.
Goldman maintains its oil price forecast, expecting Brent to average $63 and WTI $59 for 2025, and $58 and $55 in 2026. The bank also warns that a global slowdown or reversal of OPEC+ cuts could push Brent prices into the $40s in 2026.
OPEC+, which includes Organization of the Petroleum Exporting Countries and its allies, has moved up its meeting to Saturday from Monday. The expected increase would be consistent with research by Goldman Sachs’ economists.
Source: https://finance.yahoo.com/news/goldman-sachs-sees-410-000-202119713.html