Goldman Sachs says OPEC oil quotas could add 7 to 10 dollars a barrel

Author: Eamonn Sheridan | Category: News

Investment bank responses to the OPEC oil production cut agreement starting to come out

  • Goldman Sachs says OPEC oil quotas could add 7 to 10 dollars a barrel in the first half of 2017
  • If the agreement is "strictly implemented"
  • Goldman Sachs note that if cuts come into effect, production would still be around 33.7m b/d above current production levels
  • The current Goldman Sachs price forecast is $43/bbl oil (2017 forecast for $53/bbl), the bank stays with this citing the uncertainty on the OPEC proposals
  • Goldman Sachs add that quotas are likely to be exceeded
From CIBC:
  • Had been forecasting an average WTI price of $51/bbl in 2017
  • With this announcement likely to increase that by around $5/bbl
  • See a plateau for crude prices at the $60/bbl level
  • Today's news suggests we are likely to see that equilibrium reached a few quarters earlier
  • Perhaps by the end of 2017

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