By Erin Douglas

(Bloomberg) —

Near-term level of OPEC production is still the most important driver of crude prices despite growing U.S. supply, Goldman Sachs equity analysts led by Brian Singer write in a note.

* Deployment of spare capacity by Saudi Arabia, Iraq, UAE, Kuwait (and ex-OPEC by Russia), and involuntary disruptions in Libya/Venezuela/Iran are more important divers of crude prices
* Stable inventories at or slightly below the 5-year average on a days-of-demand basis and strong global demand can keep Brent oil prices $70-$80
* Expect about 1.3m b/d of U.S. oil growth this year

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Erin Douglas in New York at edouglas16@bloomberg.net

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Mike Jeffers, Debarati Roy