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In a recent client note, analysts at Goldman Sachs noted that they expect oil prices to move higher in the coming months, as the output cuts by the OPEC and its allies (OPEC +) bite into the global supplies and demand growth firms up.

Key Quotes:

“Brent crude to $67.50 / bbl next quarter.

Investors are worried too much.

Extent of the fall in global  growth expectations  is unwarranted.

Oil production losses in 2019 are already larger than predicted “¦ “Core-OPEC producers are adopting a shock and awe strategy, and exceeding their cut commitment”.  

Risks that Venezuela’s production decline accelerates.

US producers guidance is toward restrained shale production growth.

Remains “cautious” on the price outlook for H2 2019.”