Goldman Sachs lowers forecast 2020 U.S. shale oil output growth
FILE PHOTO: The ticker symbol and logo for Goldman Sachs is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., December 18, 2018. REUTERS/Brendan McDermid
(Reuters) – Goldman Sachs wound back its forecast for growth in U.S. shale output in 2020, and slightly reduced its outlook for 2020 global oil demand growth.
The brokerage said it expects shale oil production to grow by 0.7 million barrels per day (bpd) in 2020, down from its previous forecast of 1 million bpd, and below 1.1 million bpd in 2019.
The brokerage shaved its 2020 outlook for global oil demand growth to 1.3 million bpd from 1.4 million bpd previously.
It also forecast supply growth from major oil producing non-OPEC regions, outside of shale, of 1.4 million bpd in 2020, falling sharply to 0.2 million bpd in 2021 and 0.3 million bpd in 2022.
U.S. crude inventories USOILC=ECI rose by 9.3 million barrels in the week ended Oct. 11, compared with expectations for an increase of 2.9 million barrels as refinery output dropped to a two-year low.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, an alliance known as OPEC+, have since January implemented a deal to cut oil output by 1.2 million bpd to support the market.
Reporting by Diptendu Lahiri in Bengaluru; editing by Richard Pullin