Goldman Sachs sees oil price rising to $110 a barrel as Opec+ cuts output

US President Joe Biden's administration criticised the Opec+ cut as "shortsighted"

The reduction could prompt the International Energy Agency to co-ordinate a release of reserves. Morgan Stanley said the move will accelerate crude’s path back to $100 a barrel. 

Goldman Sachs has raised its fourth quarter price forecast for crude oil to $110 a barrel after the Opec+ group of oil producers pledged to cut production to keep crude prices at elevated levels. 

“All the developments we have seen on the supply side at this point very much sets the stage for what we believe will be higher prices into the end of this year,” Damien Courvalin at Goldman Sachs said. The bank increased its fourth-quarter estimate for Brent by $10 to $110 a barrel.