Goldman Sachs said the deal reached by OPEC crude producers on Wednesday to curb output should add $7 to $10 to oil prices in the first half of next year.

Goldman analysts said in a note dated Wednesday that strict implementation of the deal in 2017 would represent 480,000 to 980,000 barrels per day less output. "Longer term, we remain skeptical on the implementation of the proposed quotas, if ratified," the analysts said. 

Still, the bank reiterated its year-end and 2017 oil price forecasts, given the uncertainty of the OPEC proposal. Goldman kept its end-2016 forecast for US West Texas Intermediate crude (WTI) at $43 per barrel and its 2017 forecast at $53 per barrel. 

WTI was trading around $47 a barrel, after gaining more than 5% on Wednesday on OPEC's planned output cut. Members of the Organization of the Petroleum Exporting Countries (OPEC) agreed on Wednesday to modest oil output cuts in the first such deal since 2008. 

Source: QNA