Goldman Sachs raises its Brent oil forecast to $63

Goldman Sachs analysts have raised their 2020 Brent oil price forecast to $63 from $60 as they expect the global oil supply-demand balances to be 0.3 million barrels per day tighter than previously forecasted. 

The upward revision of the price target comes after the OPEC and Russia decided to deepen the existing 1.2 million barrels per day cut in output by additional 500,000 barrels per day through the end of March 2020. 

Key points

Analysts have warned of the potential for lesser compliance by Iraq, Nigeria, and Russia.

Analysts have maintained the 2020 US shale production growth forecast at 600kb/d.