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Oil drops as OPEC+ agreement raises prospect of more supply

Article content The group, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, agreed new production shares from May 2022. “Oil prices may continue to gyrate in the coming weeks,” Goldman Sachs said after the agreement. However, the U.S. investment bank said it remained bullish on the outlook for oil and the agreement was in line with its view that producers “should focus on maintaining a tight physical market all the while guiding for higher future capacity and disincentivising competing investments.” It said the OPEC+ deal represented $2 “upside” to its summer forecast for Brent to reach $80 a barrel and $5 upside on its outlook for the international benchmark to average $75 a barrel next year.

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