Goldman Sachs raise their oil price forecast citing after OPEC+ ouputcuts

The huge oil news is here:

• Saudi Arabia and other gulf states announce 1 million barrels per day in oil output cuts

Goldman Sachs Goldman Sachs Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It was founded in 1869 and is one of the largest and most well-known investment banks in the world.Goldman Sachs has a mixed reputation. On one hand, it is known for its expertise in investment banking and its role in many high-profile financial deals. On the other hand, it has faced criticism and controversy over the years, including accusations of unethical business practices and con Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It was founded in 1869 and is one of the largest and most well-known investment banks in the world.Goldman Sachs has a mixed reputation. On one hand, it is known for its expertise in investment banking and its role in many high-profile financial deals. On the other hand, it has faced criticism and controversy over the years, including accusations of unethical business practices and con Read this Term have pumped up their oil price forecasts in a Sunday note:

• December 2023 Brent forecast is US$95, from $90 previously
• December 2024 forecast is US$100 from $97

Goldman Sachs reasoning:

• Nine members of OPEC+ announced today a surprise "voluntary" collective output cut totalling 1.66mn b/d which will take effect from May till the end of 2023.
• As we have argued, OPEC+ has very significant pricing power relative to the past, and today's surprise cut is consistent with their new doctrine to act pre-emptively because they can without significant losses in market share.
• As we already assumed that Russia cuts would extend into 2023H2, we are lowering our OPEC+ production end-2023 forecast by 1.1mb/d.
• Incorporating this significantly lower OPEC+ supply, slightly lower demand, and the modest French SPR release, we have nudged up our Brent forecasts by $5/bbl to $95/bbl (vs. 90 previously) for December 2023, and to $100 (vs. 97) for December 2024.

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You can expect more forecasts to be raised.