Goldman Sachs Adjusts OPEC+ Oil Production Expectations, Predicts Three Months of Increases
Goldman Sachs has revised its forecast for OPEC+ oil production, now anticipating three months of production increases starting in December instead of October. The producers group has decided to postpone a planned oil output hike for October and November due to recent low crude prices, stating they could extend the delay if necessary.
Despite this adjustment, Goldman Sachs maintains its price range of $70-85 per barrel and predicts a December 2025 Brent forecast of $74 per barrel. The investment bank believes that a slight decrease in OPEC+ supply will be offset by weak demand in China and a quicker-than-expected recovery in Libya’s supply.
“We still see risks to our $70-85 range tilted to the downside due to high spare capacity and potential demand challenges from China and trade tensions,” Goldman Sachs commented. 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 summary, Goldman Sachs’s adjusted expectations for OPEC+ oil production could have implications for global oil prices and energy markets. Investors and consumers should monitor these developments closely to understand how they may impact their finances and daily lives.