Mubasher: Goldman Sachs forecasts that extending the production cut agreement by the Organization of the Petroleum Exporting Countries (OPEC) and other major producers will support crude prices through 2018.

In a report issued on Tuesday, Goldman Sachs raised its Brent price forecast for next year to $62 per barrel from $58, and for west Texas intermediate (WTI) projection were increased to $57.50 from $55 per barrel, according to CNBC.

Although OPEC members and nine non-OPEC producers have committed to extending the output limitation until the end of next year, the risk of producers exiting the agreement if they feel the market was overheating still remains.

Prior to the last meeting in Vienna on 30 November, there were concerns that Russia and others could have refused to extend the agreement on fears that producers not obligated by the OPEC-led deal may increase their production.