(Reuters) – Goldman Sachs has revised down its expectations for OPEC+ oil production, saying it now expects three months of production increases starting in December instead of October, the bank said in a note on Friday.
OPEC+ has agreed to postpone a planned increase in oil production for October and November, the producer group said on Thursday after crude prices hit their lowest level in nine months.
However, Goldman Sachs maintained its range of $70-85 per barrel and a December 2025 Brent forecast of $74 per barrel.
The investment bank expects the effects of a modest reduction in OPEC+ supply in the coming months to be offset by mitigating effects from current Chinese demand weakness and a faster-than-expected recovery in Libyan supply.
“We still view risks to our $70-85 range as on the downside given high spare capacity and downside risks to demand from weakness in China and potential trade tensions,” Goldman Sachs said.
Brent crude oil futures fell $1.63, or 2.24%, to $71.06 per barrel on Friday, the lowest level since December 2021. US West Texas Intermediate crude oil futures fell $1.48 on Friday, or 2.14%, to $67.67, the lowest level since June 2023. [O/R]
