In a note released on Friday, Goldman Sachs stated that it had adjusted its expectations for OPEC+ oil production, now anticipating three months of production increases beginning in December rather than October. After crude prices fell to their lowest level in nine months, the producers group OPEC+ announced on Thursday that it had agreed to postpone a planned increase in oil output for October and November.
The group also stated that it could further pause or rescind the increases if necessary. However, Goldman Sachs (GS.N.) maintained its Brent crude forecast for December 2025 at $74 per barrel and maintained its range of $70-85 per barrel.
The investment bank anticipates that the current softness in China’s demand and the faster-than-expected recovery of Libya’s supply will offset the effects of a modest reduction in OPEC+ supply over the next few months.
Goldman Sachs stated, “We still see the risks to our $70-85 range as skewed to the downside given high spare capacity, demand risks from weakness in China and potential trade tensions.” On Friday, Brent crude futures fell $1.63, or 2.24 percent, to $71.06 a barrel, the lowest price since December 2021. U.S. On Friday, West Texas Intermediate crude futures fell to $67.67, their lowest level since June 2023, by $1.48, or 2.14 percent.
