Goldman Sachs expects the US decision to end waivers from sanctions on imports of Iranian oil to have a limited impact on prices, even though the timing of the halt is much more sudden than expected.

"While we acknowledge the near-term upside price risks, we reiterate our fundamentally derived Brent price trading range of $70-75 per barrel for the second quarter of 2019," the bank wrote in a note.

The bank still expects declining prices into 2020 due to better supplied markets next year and high uncertainties around whether the OPEC and fellow producers will continue to abide by their agreement to curb output to support prices after June.

Goldman Sachs sees Iranian production declining by 900,000 barrels per day (bpd) compared to the immediately available global spare capacity of 2 million bpd, which is set to grow further later this year.