OPEC+ expected to halt oil production hikes after upcoming meeting — Goldman Sachs

Analysts at Goldman Sachs Group Inc. predict that OPEC+ will probably wrap up its oil production increases at the next meeting, with a pause on further hikes to follow. Saudi Arabia and its coalition have already drafted a preliminary plan to halt the gradual rise in output by September, which would end the ongoing ramp-up of 2.2 million barrels per day (bpd). According to this plan, the alliance will implement a final monthly increment of 548,000 bpd before ceasing any further adjustments.

Daan Struyven, the head of commodities research at Goldman Sachs, has a theory about OPEC's strategy. He suggests that they might keep production steady through the end of the year. The goal is to prevent market oversupply and stabilize prices. This cautious approach is being taken as global oil demand growth slows and output is boosted by non-OPEC+ producers, including the US.

The bank says commercial oil inventories have risen significantly in recent months, posing additional risks to price stability. Although OPEC+ has steadily increased production quotas, analysts believe that current market conditions call for a more restrained strategy to prevent downward pressure on oil.