Goldman Sachs predicts that the price of Brent crude will drop during the second and third quarters of this year to the level of $ 30 a barrel.
According to Reuters, Goldman Sachs based its expectations on the price war between Russia and Saudi Arabia, in light of the massive collapse of demand due to the Corona virus.
Goldman Sachs said in a note on the eighth of March, the significant reduction in the official selling price of Saudi crude and Russia's reluctance to conclude a deal on Friday, indicating the weak possibility of reaching an (OPEC +) agreement immediately.
"While we cannot exclude an OPEC + agreement in the coming months, we also believe that the agreement is fundamentally unbalanced while the cuts lack economic justifications," the bank said.
The bank said that its main concept at the moment is not to reach a similar agreement.
The bank added that the lower prices will start to create severe financial pressure and a decline in the production of shale oil and other producers who bear high costs.
Assuming that production policy remains unchanged, Goldman predicts a supply deficit in the fourth quarter of 2020, which could reduce the stockpile surplus until 2021.
The bank said that the possibility of withdrawing from stocks may help prices to recover to $ 40 a barrel by the end of this year.
