Goldman Sachs expects OPEC+ production hike to start in December By Reuters

(Reuters) – Goldman Sachs has adjusted its expectations for OPEC+ oil production, saying it now expects three months of output growth starting in December instead of October, the bank said in a note on Friday.

OPEC+ agreed to delay a planned increase in oil output for October and November, the producer group said on Thursday, after crude prices hit a nine-month low, adding that it could pause or reverse further increases if necessary.

However, Goldman Sachs maintained its range of $70-85 per barrel and a December 2025 Brent forecast of $74 per barrel.

The investment bank expects the effects of a modest reduction in OPEC+ supply in the coming months to be offset by easing effects from the current softness in Chinese demand and a faster-than-expected recovery in Libyan supply.

“We still see the risks to our $70-$85 range as tilted to the downside, given the large spare capacity and downside risks to demand due to weakness in China and potential trade tensions,” Goldman Sachs said.

Brent crude futures fell $1.63, or 2.24%, to settle at $71.06 a barrel on Friday, the lowest level since December 2021. U.S. West Texas Intermediate crude futures fell 1, $48, or 2.14%, to $67.67, the low since June 2023. ( OR)