Goldman Sachs raises 2020 Brent spot price to US$63 a barrel from US$60 previously, according to emailed report. The long-term anchor price still seen at US$55/bbl.
Bank now forecasts the US crude benchmark West Texas Intermediate (WTI) spot price at US$58.50/bbl with long-term anchor price at US$50.
Goldman updated forecasts after Opec+ agreed to bigger output cuts than expected. Opec's oil surprise came as skeptics were doubting price rise,
Bank sees shift in Opec+ strategy to managing short-term physical imbalances rather than trying to correct perceived long-term imbalances through open-ended commitments
Goldman forecasts that global oil supply/demand balances will be 0.3 million barrels per day tighter than previously expected as a result The bank said it still cannot rule out risk of poor compliance by Iraq, Nigeria and Russia.
Goldman also still maintains 2020 US shale production growth forecast at 600,000 barrels per day as poor financial performance, excess leverage and focus on emissions "sharply" pushes up cost of capital.