Experts Goldman predicts oil prices above $ 65 if OPEC cuts production

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Financial analysts at Goldman Sachs believe that the price of Brent crude oil may exceed $ 65 per barrel if the OPEC member countries agree to reduce production this week.

Experts agree that the wording of the new OPEC agreement will be restrained, for example, the goal could be to stabilize the volume of commercial stocks.

According to their estimates, at the beginning of next year, the price of Brent crude oil may exceed $ 70 per barrel amid a reduction in exports and the cessation of growth in reserves that exceed seasonal rates. This price level will allow for normalization of reserves, while not sufficient for an excessive increase in drilling activity in the United States.

If oil quotes reach $ 62-63 per barrel, this may stimulate further growth to $ 70 per barrel. However, if OPEC does not reach an agreement on reducing production at the next meeting on December 6-7, this will lead to the continuation of a downward rally.

The material has been provided by InstaForex Company - www.instaforex.com