Goldman sees elevated OPEC pricing power, $100 per barrel by April 2024 after supply cut | Reuters
Goldman Sachs says crude oil production cuts by OPEC could result in a significantly larger deficit in the market, driving a rally in prices to $100 per barrel by April 2024, and raising the group's pricing power.
OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, agreed on Sunday to widen oil supply cuts to 3.66 million barrels per day (bpd), which helped push up prices above $86 per barrel.
Goldman said it sees "elevated OPEC pricing power - the ability to raise prices without significantly hurting its demand - as the key economic driver", and estimates that the production cut will raise OPEC+ revenues as the boost to prices more than offsets the drop in volumes.
Brent crude futures were trading at $85.31 a barrel on Tuesday.
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