FILE PHOTO: REUTERS/Brendan McDermid
Goldman Sachs raised its oil price forecasts for 2020 after the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to deepen oil output cuts. Oil producers led by Saudi Arabia and Russia, agreed to cut output by an extra 500,000 barrels per day (bpd) in the first quarter of 2020.
The bank revised its Brent spot price forecast to $63 per barrel for 2020, up from a previous estimate of $60, while it also increased West Texas Intermediate (WTI) spot price outlook to $58.5 per barrel from $55.5.
The bank also revised its supply-demand forecast for 2020. Goldman lowered its demand growth forecast by 50,000 bpd, citing prospects for a modest recovery in global growth.