Goldman Sachs lowered its forecast for Brent price in the second and third quarters to the level of $ 30 per barrel due to the price war between Russia and Saudi Arabia and coincided with a significant decline in demand due to the Corona virus crisis. Goldman Sachs said in a previous note that the significant reduction in the official sale price of Saudi crude and Russia's reluctance to conclude a deal on Friday indicated the weak possibility of reaching an OPEC agreement.
The bank said: It is not excluded that there will be an agreement for OPEC in the coming months, and that the cuts are unbalanced and lack any economic reason, as he stressed that the current vision now is not to reach an agreement.
As the lower prices work on severe financial pressure and a decline in shale oil production and other producers bear a higher cost, even if the production policy has not been changed, the bank expects the emergence of a supply deficit in the last quarter of this year, thus reducing the surplus stocks until 2021. He also stressed that the possibility of withdrawing from Stocks Prices may help rise to $ 40 a barrel again at the end of this year.
