Goldman Sees Possible OPEC Output Freeze as Self-Defeating
- Deal would show cooperation from new Saudi energy minister
- Production cap may support prices, producer supply gains
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OPEC and some producers from outside the group may agree to freeze output during informal talks next month, which could prove “self-defeating” because it would benefit other suppliers, according to Goldman Sachs Group Inc.
A deal would show signs of cooperation from Saudi Arabia’s new energy minister after six failed attempts, Goldman analysts including Damien Courvalin said in a report dated Aug. 22. An output cap would likely prove counter productive for the Organization of Petroleum Exporting Countries if it led to further price gains and an increase in supply from other producers, it said.