Global oil prices may see near-term support as OPEC+ production cuts continue to stabilize the market. According to a recent report by Goldman Sachs, crude production from Iraq, Kazakhstan, and Russia has declined by 0.5 million barrels per day in compliance with the group’s production reduction strategy. This decrease is expected to provide modest upward pressure on Brent crude prices in the coming months.
Goldman Sachs predicts that Saudi Arabia, a leading member of OPEC+, will likely extend its oil production cuts due to the recent drop in prices. The bank has revised its forecast, stating that the cuts could last until April 2025, rather than the previously anticipated January 2025. Despite this, Goldman has maintained its average Brent crude price forecast for 2025 at $76 per barrel.
OPEC+, a coalition of OPEC members and allies like Russia, has also delayed a planned production hike from December to January, with further discussions ongoing to extend this timeline. The investment bank emphasized that any production increases would be gradual and driven by market data.
Rising compliance among OPEC+ members indicates strong coordination to stabilize oil prices. This collaboration is crucial, given that Brent crude futures have mostly traded within a $70-$80 per barrel range this year, with prices falling below $74 per barrel recently.
While OPEC+ continues its efforts to manage supply, global commodity trading firms, including Vitol, Trafigura, and Gunvor, have echoed Goldman Sachs’ view that voluntary production cuts are unlikely to be reversed in the short term.
Despite geopolitical uncertainties and an anticipated deficit in 2024, Goldman Sachs projects Brent crude to average $80 per barrel this year, with an anticipated surplus in 2025 potentially tempering long-term price growth.
Global oil prices may see near-term support as OPEC+ production cuts continue to stabilize the market. According to a recent report by Goldman Sachs, crude production from Iraq, Kazakhstan, and Russia has declined by 0.5 million barrels per day in compliance with the group’s production reduction strategy. This decrease is expected to provide modest upward pressure on Brent crude prices in the coming months.
Goldman Sachs predicts that Saudi Arabia, a leading member of OPEC+, will likely extend its oil production cuts due to the recent drop in prices. The bank has revised its forecast, stating that the cuts could last until April 2025, rather than the previously anticipated January 2025. Despite this, Goldman has maintained its average Brent crude price forecast for 2025 at $76 per barrel.
OPEC+, a coalition of OPEC members and allies like Russia, has also delayed a planned production hike from December to January, with further discussions ongoing to extend this timeline. The investment bank emphasized that any production increases would be gradual and driven by market data.
Rising compliance among OPEC+ members indicates strong coordination to stabilize oil prices. This collaboration is crucial, given that Brent crude futures have mostly traded within a $70-$80 per barrel range this year, with prices falling below $74 per barrel recently.
While OPEC+ continues its efforts to manage supply, global commodity trading firms, including Vitol, Trafigura, and Gunvor, have echoed Goldman Sachs’ view that voluntary production cuts are unlikely to be reversed in the short term.
Despite geopolitical uncertainties and an anticipated deficit in 2024, Goldman Sachs projects Brent crude to average $80 per barrel this year, with an anticipated surplus in 2025 potentially tempering long-term price growth.
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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