Goldman Sachs expects OPEC + to keep its oil production unchanged for May, when the group meets next week, and to continue making "still the big rise of 3.4 million barrels per day that is expected. for September," the bank said.
Sources told Reuters earlier in the week that they expect a decision similar to the one in the last quote when the Organization of the Petroleum Exporting Countries and a group of Russian-led allies, known as OPEC +, meet on April 1 to decide their pumping policy.
The group agreed to extend most of the cuts to crude pumping until April when it met earlier in the month, although it allowed Russia and Kazakhstan a modest 150,000 barrels per day hike.
“This remains well above the production increase expected by OPEC and the IEA given our higher demand forecasts, as well as being a feat for a group of producers that cut their extraction by 50% in the last year,” added Goldman Sachs.
Crude prices climbed more than 3% on Friday, but were still on track for their third consecutive week of losses as the demand outlook was affected by new lockdowns from the coronavirus in Europe.
Goldman Sachs continues to view the decline in crude prices as “overlooking changes in oil fundamentals.”
In particular, he expects a smaller increase in OPEC + pumping this spring to help offset a slower recovery in demand in emerging markets and the European Union and an increase in exports from Iran, "while global demand it continues to grow strongly during the (boreal) summer," the bank said.