After OPEC+ in a record oil deal agreed to slash global output by 9.7 million bpd, Goldman Sachs said that oil prices would continue to fall in the coming weeks. The company said that a “historic yet insufficient” deal by major oil producers to cut output is unlikely to offset a coronavirus-led demand rout.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a grouping known as OPEC+, said they had agreed to reduce output by 9.7 million barrels per day (bpd) for May and June to stem a slump in prices.
The bank saw downside risks to its short-term oil price forecast of around $20 per barrel for Brent but projected the global crude benchmark would outperform U.S. oil because OPEC+ producers’ exports would likely fall, freeing up floating storage space.
