By Giulia Petroni

Goldman Sachs trimmed its oil price forecasts, saying it expects the Organization of the Petroleum Exporting Countries and its allies to continue accelerating output hikes.

The cartel and its allies are projected to raise production by another 411,000 barrels a day in July, the same amount it announced for May and June.

"Saturday's decision to hike production again by 411,000 barrels a day in June increases our confidence that the new baseline size of production increases is likely 411,000 barrels a day," analysts at the bank said.

As a result, Brent is seen at an average of $60 a barrel in the remainder of 2025 and $56 a barrel in 2026, from $63 and $58 previously. The U.S. oil gauge West Texas Intermediate is forecast at $56 and $52 a barrel in the aforementioned periods, respectively, from earlier expectations of $59 and $55 a barrel.

"The decision likely reflects multiple factors, including relatively low oil inventories--partly on supply misses from Venezuela and U.S. shale--and a desire to improve compliance of several countries, especially Kazakhstan and Iraq," Goldman analysts said.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

May 05, 2025 04:02 ET (08:02 GMT)

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