Crude oil output path uncertain as OPEC+ talks cease – Goldman Sachs
|In its latest note, analysts at Goldman Sachs maintained its Brent price forecast of $80 per barrel despite the uncertainty triggered by the collapse of OPEC+'s oil output talks.
Key quotes (via Reuters)
"The differences between both parties seem surmountable as they agree on ramping up production into year-end with the still high uncertainty for 2022 oil balances making a pledge to any long-term commitment unnecessary today."
“Maintains view for a gradual increase in production in the second half this year, followed by similar increases in production in the first quarter of 2022 to finally bring the fall in inventories to an end.”
"While the threat of a new OPEC+ price war is no longer negligible, its negative price impact would be dampened by a global market starting in a 2.5 mb/d deficit and in need of an extra 5 million bpd in production by year-end to avoid critically low inventories."
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