OPEC+ members’ decision to gradually increase oil output as of January 2021 will unlikely impact the oil market rebalancing due to the expected higher demand, Reuters reported, citing Goldman Sachs statement.
“OPEC+ clearing the hurdle of exiting its current cuts in a coordinated way and its focus on both growing production and drawing inventories reinforces our conviction in a steady and sustainable rally in oil prices through 2021,” Goldman noted.
The US bank forecast the average Brent price to reach $65 per barrel over the next 12 months.
According to data compiled by Argaam, the OPEC+ alliance reached an agreement on Dec. 3 to increase oil production by 500,000 barrels per day (bpd) to 7.2 million bpd as of next January.
The alliance agreed to hold monthly ministerial meetings from January 2021 to assess market conditions and decide on additional production adjustments on a monthly basis, provided that the monthly adjustment does not exceed 500,000 bpd.