Goldman Sachs: Decline in production not to prevent oil price from falling

12:43 - 13.04.2020


April 13, Fineko/abc.az. The agreement on oil production cuts by the OPEC+ coalition contains very few restrictions in volume and was adopted too late to prevent a decline in the price of black gold in the coming weeks, reports Goldman Sachs, one of the leading investment banks in the U.S.

According to the Bank, the decision to reduce OPEC+ oil production by 9.7 million bpd in May will be fully taken by the OPEC members and the remaining members by 50%. Goldman Sachs claims that the production limit in May will be 4.1 million bpd.

Noting that the risks to oil prices, which in the short-term prospect are projected at $20 a barrel are lower, Goldman Sachs noted that production restrictions will not be enough to compensate for the daily decline in oil demand by 19 million bpd, expected between April and May.

 

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