Dec 18 Reuters Goldman Sachs trimmed its price expectation for Brent crude in 2024 by 10 per barrel to between 70 and 90, saying strong production from the United States would moderate any upside in oil prices.

We still look for rangebound prices and only moderate price volatility in 2024. Elevated spare capacity to handle tightening shocks should limit upside price moves, its analysts said in a note dated Sunday.

The investment bank now expects Brent to recover to a peak of 85 per barrel in June 2024, and to average at 8180 in 20242025 compared to 92 previously.

Brent was trading around 77 as of 0526 GMT on Monday, down 20 from multimonth highs hit in September. U.S. West Texas Intermediate crude was around 72 a barrel.

Continued supply from nonOrganization of the Petroleum Exporting Countries OPEC sources, led by the U.S, shows that several tailwinds to the U.S. production are likely to persist in 2024, Goldman Sachs added.

Analysts said they expect U.S. Lower 48 crude output to reach 11.4 million barrels per day mbd in the fourth quarter of next year, and hiked U.S. total liquids supply 2024 growth forecast to 0.9 mbd from 0.5 mbd earlier.

However, OPEC decision to rein in supply, a recovery in China, restocking in the U.S. and modest recession risk should limit downside risk to oil prices, the bank noted.

Saudi Arabia is unlikely to 39;flush39; the market in 2024, Goldman analysts said, adding we expect full extensions of the OPEC cuts announced in April…