5 May 2025 | Oil

OPEC+ supply increase causes Wall Street to downgrade oil price forecasts again

OPEC+ supply increase causes Wall Street to downgrade oil price forecasts again

Wall Street analysts are lowering oil price forecasts and warning of a market glut resulting from increased OPEC+ supplies.

On Monday, May 5, Brent crude oil prices fell by 2.7% to $59.63 per barrel after the OPEC+ cartel announced an additional supply of 411,000 barrels per day (bpd) in June. Saudi Arabia also warned that it could increase supplies further.

Goldman Sachs Group Inc. lowered its Brent price forecasts for this year and next by $2-3 per barrel. The firm suggested that the OPEC+ decision could be a strategic move to curb US shale oil production.

Morgan Stanley lowered its quarterly estimates for this year by $5, which now stand at $62.50 per barrel for the third and fourth quarters. Following the latest OPEC+ agreement, the projected surplus is expected to increase by 400,000 bpd to reach 1.1 million bpd in the second half of the year.

Warren Patterson of ING noted that a more aggressive increase in OPEC+ output would lead to an oil surplus, leaving the market oversupplied through 2025.

Company MarketCheese
Period: 24.07.2026 Expectation: 650 pips
Brent crude still has upside potential after consolidation
17 July 2026 35
Period: 17.08.2026 Expectation: 650 pips
Selling AUDCAD down to 0.97500
17 July 2026 28
Period: 24.07.2026 Expectation: 950 pips
USDCAD is bottoming out after recent pullback from July highs
17 July 2026 33
Period: 01.08.2026 Expectation: 2400 pips
GBPUSD sell-off targets 1.31500
17 July 2026 33
Gold sell
Period: 31.07.2026 Expectation: 250 pips
Selling gold down to $4,000
17 July 2026 38
Period: 23.07.2026 Expectation: 1090 pips
USDJPY sell-off targets 161.030 amid lower market volatility and higher inflation expectations in Japan
16 July 2026 27
Go to forecasts