So, OPEC’s top producer and leader of the OPEC+ alliance decided to make it easier for the cheaters to “compensate” and, in the meantime, increase its own production after years of trying to “stabilize the market.” Analysts also say that the Saudis are leading another OPEC+ effort to discipline the U.S. shale industry and force a slowdown in drilling activity and production growth through oil prices lower than the breakevens for new shale wells. The Goldman team, led by the head of oil research Daan Struyven, also noted that “Our key conviction remains that high spare capacity and high recession risk skew the risks to oil prices to the downside despite relatively tight spot fundamentals.” The bank revised down its projection of Brent Crude prices to $62.50 per barrel in the third and fourth quarters of this year, down by $5 per barrel from the previous forecast.
Author: Tsvetana Paraskova
Published at: 2025-05-06 22:00:00
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