U.S. oil output is likely to outpace global demand, at least through 2020, according to research by Goldman Sachs. The Wall Street investment bank predicts U.S. oil output will grow by 1.3 million barrels per day (bpd) in 2019 and 1.2 million bpd in 2020, while global demand growth is pegged at 0.8 million bpd in 2019 and 1.6 million bpd in 2020.
Goldman Sachs kept it 2020 price outlook unchanged, with Brent priced at $60 per barrel and WTI at $55.50.
OPEC and its allies led by Russia recently agreed to extend oil output cuts until March 2020, which will help to keep a lid on global production.
"An exit strategy from the cuts was not discussed, and it remains to be seen whether the decision to extend cuts to accommodate shale growth will ultimately drive the need for deeper cuts in 2020,” Goldman Sachs Equity Research stated in a note on Sunday.
