12. RESPONSIBLE CONSUMPTION AND PRODUCTION

Goldman Sachs sees OPEC+ unlikely to raise production at June meeting

Written by Amanda

UPDATE 1-Goldman Sachs sees OPEC+ unlikely to raise production at June meeting

Adds details and background

May 8 (Reuters)Goldman Sachs on Wednesday said they no longer expect OPEC+ to announce a partial unwind of voluntary productioncuts in June.

The bank said inventories have recently surprised to the upside, and as a result, their model now estimates only a 37% chance of a production increase decision in June.

“While our interpretation of OPEC+ communication is that no final decision has been made, we now expect Saudi crude supply to remain flat at 9 mb/d (million barrels per day) in July (vs. 9.2 previously)” the Wall Street bank added.

Goldman still expects Brent crude futures LCOc1 to remain in a range of $75 to $90 a barrel in most scenarios and forecasts they will average $82 in 2025, it said in a note.

Brent settled below $84 a barrel on Wednesday. O/R

Russian Deputy Prime Minister Alexander Novak said on Tuesday that there had beenno discussions about an oil output increase by OPEC+.

Reporting by Anushree Mukherjee in Bengaluru
Editing by Marguerita Choy

Source: xm.com

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