Goldman Sachs experts improved oil price forecasts for 2020 due to a more balanced situation with global demand and supply of fuel after the OPEC decision to deepen crude production cut in the first quarter of next year.
Bank analysts expect the Brent price to amount average $63 per barrel in 2020 compared with the previous forecast of $60 per barrel, whereas the price for U.S. WTI light crude could increase to $58.5 from the previous estimates of $55.5 per barrel.
Recall, OPEC countries and its allies agreed last week to cut oil production by an additional 500,000 barrels per day in the first quarter of 2020, but refrained from promising any stimulus after March 2020.
Meantime, Goldman Sachs experts lowered the demand growth estimates by 50,000 barrels per day to 0.9 million barrels per day in 2019 and 1.2 million barrels per day in 2020.
Now the bank’s analysts generally forecast a supply and demand balance in 2020, while previously it was expected supply glut by 300,000 barrels per day.