Goldman Sachs on Wednesday said they no longer expect OPEC+ to announce a partial unwind of voluntary production cuts in June.
The bank said inventories have recently surprised to the upside, and as a result, their model now estimates only a 37% chance of a production increase decision in June.
“While our interpretation of OPEC+ communication is that no final decision has been made, we now expect Saudi crude supply to remain flat at 9 mb/d (million barrels per day) in July (vs. 9.2 previously)” the Wall Street bank added.
Goldman still expects Brent crude futures to remain in a range of $75 to $90 a barrel in most scenarios and forecasts they will average $82 in 2025, it said in a note.
Brent settled below $84 a barrel on Wednesday.
Russian Deputy Prime Minister Alexander Novak said on Tuesday that there had been no discussions about an oil output increase by OPEC+.
(Reporting by Anushree Mukherjee in Bengaluru Editing by Marguerita Choy)