Goldman Sachs sees faster ramp-up of oil output

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Wall Street bank analysts say price surge may lead to bigger-than-expected production rise

With Brent oil prices having surged to about $90 a barrel, oil cartel Opec and its allies may announce a bigger-than-expected rise in output, according to Goldman Sachs.

“We view growing potential for a faster ramp-up at this meeting, given the pace of the recent rally and the likely pressure from importing nations,” analysts including Damien Courvalin, Callum Bruce and Jeffrey Currie wrote in a report. Goldman said such a move by Opec would result in a short-term blip for crude prices and would not change the bank’s bullish view. The rapid decline in Covid-19 cases, strong demand so far in 2022 and initial earnings from US producers “all reinforce our conviction in the need for sharply higher prices”, the bank said.

 

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