Goldman Sachs raises WTI forecast to $ 55/brl for Q1 2017

Goldman Sachs Group Inc. raised its oil-price forecast for early next year in wake rising optimism of an OPEC production cut and Russia’s output freeze deal. The investment bank expects oil prices in New York to rise to an average $55 a barrel during the first half of 2017 -- from $45 and $50 previously.

Russian President Vladimir Putin told reporters Sunday in Lima that there is a "strong likelihood" that an agreement will be reached, and that Russia is willing to freeze output at current levels.

Iraq’s Oil Minister Jabbar al-Luaibi also said he is optimistic that OPEC will reach an agreement at the Nov. 30 meeting. His comments were followed by similarly positive comments from Iran, thus lending support to further optimism.

Meanwhile, both crude benchmarks are extending the upside to trade almost +3.56 percent, on the back of renewed optimism over a potential OPEC output cut deal.

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