OPEC+ deal to boost oil prices – Goldman Sachs

Analysts at Goldman Sachs expect a modest "upside" to its summer forecast for Brent oil prices, as OPEC and its allies (OPEC+) deal to boost oil supply backs its view on oil prices.

Key quotes

"The agreement had two distinct points of focus: a moderate increase in production which will keep the market in deficit in the coming months, as well as guidance for higher capacity which will be needed in coming years given growing under-investment.”

"OPEC should focus on maintaining a tight physical market all the while guiding for higher future capacity and disincentivizing competing investments.”

"The OPEC+ deal represents $2 per barrel "upside" to its $80 per barrel summer Brent price forecast and a $5 upside to its $75 per barrel forecast for next year.”

“The catalyst for the next leg higher in prices is shifting from the demand to the supply side, with upside risks to price forecasts in the coming months.”

• WTI drops and pops in the open on OPEC news