The Organization of the Petroleum Exporting Countries (OPEC) and some of its allies will meet in Vienna on Friday to discuss increasing oil output, and while it is widely expected that they will increase production oil prices should remain high this summer, according to Goldman Sachs.
Brent crude oil rallied to about $80 a barrel in the spring amid a tightening market, but pulled back when it seemed apparent that OPEC would intervene. Now, the European oil benchmark is trading around $75 a barrel – but Goldman expects it will peak at $82.50 in the summer and will trade at $75 at yearend.
Goldman’s analysts expect core OPEC and Russian production to increase by 1 million barrels per day by yearend and by another half million barrels per day in the first half of 2019. But, these increases will be offset by supply disruptions in Venezuela and Iran.
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