Goldman Sachs hikes oil price outlook Investment bank Goldman Sachs Friday revised its crude oil price forecast for the second quarter of 2017 on the back of a decision byOPEC members and other countries to cut production amid growing demand from consumers.
Goldman Sachs has upped its oil price outlook for the second quarter of 2017 to $57.50 a barrel from $55 a barrel for U.S. West Texas Intermediate crude. It also raised its price forecast for international benchmark Brent crude to $59 a barrel from $56.50 a barrel.
“Ultimately,our work onSaudi Arabia‘s fiscal balance suggests that the kingdom has a strong incentive to cut production to achieve a normalization of inventories,even if it requires a larger unilateral cut, consistent with comments last weekend by the energy minister. Given this incentive to cut and in light of the OPEC and non-OPEC cuts announced over the past two weeks, we are slightly raising the 1H17 production declines that we project from the participating producers,” the Goldman analysts wrote.
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