Goldman Sachs Expects OPEC+ Production to Increase by 410,000 bpd in August

Goldman Sachs expects OPEC+ to increase oil production by 410,000 barrels per day in August.

The bank noted that tight spot market fundamentals, strong global economic activity data, and seasonal support for oil demand during the summer suggest that the expected slowdown in demand may not be sufficient to prevent a production increase when the decision on August levels is made at the July 6 meeting.

OPEC+, the world’s largest oil-producing alliance, decided on Saturday to proceed with a new production increase of 411,000 barrels per day for July, a move aimed at regaining market share and imposing discipline on producers who exceed quotas.

Goldman Sachs believes this decision reflects the continued tightness of supply in the market, the resilience of the global economy, and the alliance’s efforts to achieve a long-term balance that helps reduce excess capacity, strengthen cohesion among its members, and curb shale oil production in the United States.