Goldman Sachs lowers oil forecast after OPEC+ boosts production: What to know
Saudi Arabia, Russia and other members of OPEC+ announced another major production increase, sending oil prices below $60 a barrel.
Oil prices fell more than a dollar on Monday to just over $60 a barrel on the back of the OPEC+ production increase announcement, prompting a major Wall Street firm to revise its market forecast.
Brent crude oil, considered the global benchmark for oil prices, was trading at around $60.27 at 4:50 p.m. ET on Monday, per market data. The commodity opened at around $59 a barrel after trading above $61 on Friday.
Goldman Sachs said in a note dated Sunday that it expects Brent crude to average $60 a barrel for the rest of 2025, citing OPEC+'s production decision. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, Oman and the United Arab Emirates said on Saturday that they would increase output by 411,000 barrels a day in June. The decision followed the eight oil producers in the group deciding to boost production by the same amount in May, sending oil prices down 7% to around $69.90 a barrel at the time.
Goldman had previously forecast Brent crude at $63 a barrel, according to reports on Monday from Reuters, the Wall Street Journal and others.