22 C
Dubai
Saturday, March 2, 2024
spot_img

“Goldman Sachs: Possibility of Deeper OPEC Output Cut Still Under Consideration”

As OPEC+ oil producers gear up for their upcoming meeting, Goldman Sachs suggests the possibility of a more substantial group oil output cut. The Wall Street bank expects an extension of existing voluntary curbs by Saudi Arabia and Russia through at least Q1 2024. While the base case foresees maintaining the voluntary group cut, there’s a 35% subjective probability of major OPEC producers announcing a “deeper” group cut.

Precautionary Move Amid Uncertainties

Goldman Sachs sees this potential deeper cut as a precautionary measure against Brent prices dropping below $80 per barrel, particularly with weaker seasonal demand in Q1. The bank envisions a scenario where major OPEC+ producers, including Saudi Arabia, Russia, the UAE, Iraq, and Kuwait, might collectively implement a 0.5-1 million barrel per day cut through Q1.

Market Dynamics and Potential Outcomes: Goldman Sachs

While such a move could lead to a modest increase in oil prices, Goldman Sachs suggests the immediate reaction might be neutral or slightly downward in most other scenarios. It emphasizes the ongoing commitment of OPEC+ members, who have already pledged substantial output cuts in previous steps initiated in late 2022.

As OPEC+ nations prepare for a crucial meeting, Goldman Sachs outlines potential outcomes, highlighting the consideration of a deeper group oil output cut amid market uncertainties.

Also Read

DriEV’s Charge Towards Eco-Mobility: Envisioning a Cleaner UAE

UAE Public Holidays 2024: Unveiling Dates for 13 Days Off and 4 Extended Weekends

Related Articles

International Jewellery Summit Sparkles in Dubai , Dazzling Unity

International Jewellery Summit in Dubai, The anticipation and excitement are palpable as the stage is set for the upcoming India Gem & Jewellery Show in...

Emirates Development Bank’s Impact on UAE Industrial GDP: A Catalyst for Economic Growth

Emirates Development Bank Empowers UAE's Industrial Growth with Boost to GDP Contribution Since the launch of its strategy in 2021, Emirates Development Bank (EDB) has...

UAE Corporate Tax Introduces Dh10,000 Fine for Late Registration

UAE Corporate Tax – Unveiling the Dh10,000 Fine for Late Registration The Ministry of Finance recently unveiled a new initiative aimed at bolstering compliance with...

Saudi Arabia and Qatar Join Forces in Bid for Transformative Egyptian Project, Prosperity Unleashed

Saudi Arabia and Qatar Compete for Revolutionary Egyptian Project In the race to invest in the Ras Ghamila area of Sharm El-Sheikh, Egypt, institutions backed...

Elon Musk Visionary Optimus Video Leaves Audiences Intrigued: Unraveling the Mystery Behind its Power

Elon Musk Visionary Video Leaves Viewers Intrigued Elon Musk has sparked widespread intrigue and speculation across social media platforms with the unveiling of a humanoid...

Latest Articles