Goldman Again Slashes Oil Price Forecast As Saudis Launch Price War On Quota-Buster Kazahksatan

Goldman Sachs slashed its oil price forecast for a third time in one month after OPEC+ decided this weekend to hike production in June with a similar 410,000-bpd increase it is implementing in May. In an online meeting on Saturday, key OPEC+ producers led by Saudi Arabia and Russia agreed to raise collective output by 411,000 barrels per day (bpd), nearly triple the volume originally scheduled, in order to punish chronic cartel quota abusers such as Kazakhstan.

The move follows a similar surge announced for May and signals a sharp reversal from OPEC+ efforts to defend oil prices, in what now appears a clear price war against US shale producers and various OPEC+ quota abusers such as Kazakhstan.

Following the announcement of another aggressive production hike, Goldman Sachs again cut its average oil price forecasts this year and next.