Expectations are growing for additional supply restrictions from OPEC+ | November 20, 2023

Oil prices continued to rise on Monday. Brent contracts ended Friday up 4%. There is growing expectation in the market that OPEC+ will take additional steps to ensure price stability. Goldman Sachs believes that additional production cuts cannot be ruled out in order to prevent excess supply on the market.

Goldman Sachs also believes that, at a minimum, the current reduction plan will last until the end of 2024, and Saudi Arabia will stick to its decision to voluntarily reduce production by 1 million barrels per day until July. Only after this will the leader of the oil market begin to gradually reduce its contribution to limiting supply. Plus, there are fears that the availability of Russian oil will worsen after the United States imposed sanctions on three tankers from the UAE, which are suspected of transporting oil from the Russian Federation above the ceiling set by the G7.

WTI — $76.45 (+0.74%),

Brent — $81.26 (+0.81%),

Gold – $1984.50 (-0.01%).

“This information is for informational purposes only and does not constitute an individual investment recommendation.”

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