Goldman Sachs expects OPEC+ to raise output quotas by about 140,000 barrels per day in November, ahead of the alliance’s ministerial meeting on Sunday.
The bank said a larger increase was also possible, pointing to still-tight global stockpiles. OECD inventories in Europe and Asia have risen only modestly, total oil stocks remain slightly below year-ago levels, and U.S. crude inventories are at an eight-month low.
“Demand from Asia remains solid, and we see downside risks to Russian oil production,” Goldman noted, adding that Moscow’s output has already fallen below earlier projections.
The bank also highlighted precedent, recalling that OPEC+ tripled the pace of monthly hikes during the second stage of unwinding its 2.2 million bpd production cut when the market absorbed the initial move.
Since reversing its output-cut strategy in April, OPEC+ has already lifted quotas by more than 2.5 million bpd. A smaller group of eight OPEC+ members will meet online on October 5, with Reuters reporting a likely increase of at least 137,000 bpd.
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Info via Reuters report.
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