What Is Iraq's Connection? Goldman Sachs: OPEC+ Cuts May Support Oil In The Short Term, 27 NOV

 What Is Iraq's Connection? Goldman Sachs: OPEC+ Cuts May Support Oil In The Short Term

Energy  Economy News - Follow-up  [rtl]Crude oil production in Iraq, Kazakhstan and Russia has fallen in compliance with OPEC+ production cuts, supporting some upside for Brent prices in the near term, according to a recent note from Goldman Sachs.

The investment bank added in its note issued yesterday, Tuesday, that Saudi Arabia is likely to extend oil production cuts due to the recent decline in prices, and that it now believes that oil production cuts will continue until April 2025 instead of January.

Goldman Sachs maintained its forecast for the average price of Brent crude for 2025 at $76 per barrel.

Two OPEC+ sources told Reuters that the group, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, is discussing another delay to the oil production increase that was scheduled to start in January.

At the group's most recent meeting on November 3, OPEC+ agreed to postpone a production increase scheduled for December for a month.

he bank said that "any increase in OPEC+ production will be gradual and data-dependent."

Goldman Sachs added that the high level of compliance with OPEC+ production cuts indicates that the group's member states are working together to stabilize oil prices.

 He said that the production of Iraq, Kazakhstan and Russia decreased by 0.5 million barrels per day in November.

OPEC members are unlikely to backtrack on voluntary production cuts in the near term, executives from global commodity trading giants Vitol, Trafigura and Gunvor told the Energy Intelligence Forum in London.

But despite OPEC+ production cuts and delays to boost output, Brent crude futures have mostly remained in a $70-$80 range this year, trading below $74 on Tuesday.

]Goldman Sachs last week revised its forecast for Brent prices to an average of $80 per barrel this year, despite a supply deficit and geopolitical uncertainty in 2024, pointing to an expected surplus in 2025.     https://economy-news.net/content.php?id=50280