Despite the uncertainty created by the collapse of OPEC+’s oil output agreement, Goldman Sachs analysts maintained their Brent price expectation of $80 per barrel in their most recent note.
“The tensions between the two parties appear to be fading as they agree to ramp up production through the end of the year, despite the fact that the oil balances for 2022 remain very unpredictable, making a long-term commitment superfluous today.”
“Remains optimistic about a steady increase in output in the second half of this year, followed by comparable increases in the first quarter of 2022 to halt the inventory decline.”
“While the threat of a new OPEC+ price war is no longer insignificant, its negative price impact would be mitigated by a global market that began the year with a 2.5 million barrels per day deficit and required an additional 5 million barrels per day in production by year’s end to avoid critically low inventories.”
WTI Price Analysis: The 100-day moving average poses a risk to the downside.
The Kremlin believes that an OPEC+ decision on oil output is required./n
