In just five days, Goldman Sachs has changed its mind about the expected OPEC cuts compliance, now seeing cartel members—especially Saudi Arabia—as having a “strong” incentive to stick to promised cuts, which prompted the bank to raise on Friday its WTI price forecast for the second quarter next year to US$57.50 from US$55. The forecast for WTI price for the first quarter of 2017 was left unchanged at US$55. Goldman Sachs also lifted its Brent Crude price forecast to US$59 from US$56.50 for the second quarter, and now expects Brent price to average US$57.40 next year, up by US$3.40 compared to previous estimates. Five days ago, Goldman was expecting low compliance to the cuts, and kept its WTI price forecast at US$55 for the first half of 2017. Having analyzed Saudi Arabia’s fiscal revenue expectations and outlook for next year, Goldman now sees the compliance at 84 percent. “Ultimately, […]