Goldman Sachs lifts 2020 oil forecasts

Goldman Sachs raised its 2020 Brent spot price to $63/bbl from $60 previously.

Report informs, citing Bloomberg, that the agency received an emailed report from the financial institution. The long-term anchor price is still seen at $55/bbl.

The bank now forecasts WTI spot price at $58.50/bbl with long-term anchor price at $50.

Goldman updated forecasts after OPEC+ agreed to bigger output cuts than expected. 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.

It forecasts that global oil supply/demand balances will be 0.3m b/d tighter than previously expected as a result. Goldman Sachs still cannot rule out the risk of poor compliance by Iraq, Nigeria and Russia.

At their July 1 session, OPEC+ countries agreed to extend the oil output reduction until March 2020. The current agreement provides for an overall reduction in oil prices by 1.2 mln barrels daily to the level of October 2018, with OPEC countries accounting for 812,000 daily and non-OPEC countries for 383,000 barrels.