Goldman Sachs expects the Brent crude oil price to reach $ 67.50 a barrel in the second quarter of the year, as OPEC production is associated with healthy demand due to "shock and awe" and increased supply disruptions.
"The producers are following a" shock and awe-inspiring "strategy and exceeding their cutback commitment," the investment bank said in a February 12 research letter.
"The production losses at the beginning of 2019 are already greater than expected," says Goldman. He points out that US sanctions against Venezuela's oil industry may cause further disruption.
"The disruptions have increased and there is a risk that production in Venezuela will accelerate following the introduction of additional US sanctions related to the oil industry in Venezuela," Reuters cited the investment bank.
The fundamentals for oil improve significantly and are already recognizable according to Goldman Sachs in an above-average destocking.
At the beginning of the year, the investment bank had lowered its oil price outlook this year, with abundant supply. In early January, Goldman expected Brent Crude an average price of $ 62.50 a barrel this year, compared to a previous forecast of $ 70 a barrel. WTI Crude will average $ 55.50 a barrel, according to Goldman Sachs, compared to a previous estimate of $ 64.50 a barrel. Related: Oil is rising despite rising oil, product inventories
Goldman expects oil prices for the second quarter to be $ 67.50 in the next quarter, compared to $ 62.87 on Wednesday, an increase of 0.72 percent.
Earlier this week, OPEC's largest producer and factual leader, Saudi Arabia, signaled even deeper cuts in the UK's production and exports in March. Saudi Arabian Energy Minister Khalid al-Falih said in an interview with the Financial Times that Saudis would cut production to around 9.8 million barrels a day in March, about 500,000 barrels a day below OPEC's commitment in January +.
The cartel's secondary sources on Tuesday showed that total January OPEC production fell 797,000 bpd from December to an average of 30.81 million bpd. In Saudi Arabia, production was cut by 350,000 bpd to 10,213 million bpd, and its allies in the Arabian Gulf of Kuwait and the United Arab Emirates (UAE) also reduced production significantly.
By Tsvetana Paraskova for Oilprice.com
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