Goldman Sachs said, larger than expected production cuts by some major oil suppliers and falling seasonal crude inventories due to growing demand are set to push up oil prices.

The Goldman Sachs expects benchmark Brent crude prices to touch $67.50 per barrel in the second quarter of 2019.

"The production losses to start 2019 are already larger than we expected," Goldman said. "Producers are adopting a 'shock and awe' strategy and exceeding their cut commitment."

The bank also said that crude supply was being disrupted by U.S. sanctions that kicked in last month on Venezuela's oil exports.

But Goldman said it was cautious on the price-outlook for the second-half of 2019 as low-cost producers increase output.