More OPEC+ oil need to balance market: Goldman
Goldman Sachs Commodities Research said that an increase in oil production is needed from the Organization of the Petroleum Exporting Countries and allies (OPEC+) to balance the market by 2022.
The U.S. bank forecasts that oil demand to rise by an additional 2.2 million barrels per day (mbpd) by the end of this year.
"While a large new infection wave could slow the market rebalancing, we expect OPEC+ to remain tactical in its output hikes with downside risks to global supply elsewhere pointing to a more robust outlook for crude and the upstream sector than petroleum products and the downstream sector," Goldman said in a note dated June 29.
OPEC+ will meet on July 1st to discuss the implications of the delta variant of the COVID-19 virus on oil industry. While also considering a possibility of Iran’s return to oil production.
