Goldman Says Ignore the Technical, Savor the Fundamental on Oil

21 Apr 2017   Prices

Bank says recent selloff in prices driven by technical reasons Goldman sees pace of U.S. inventory declines as encouraging Goldman Sachs Group Inc. says there’s no fundamental evidence in the oil market to justify this week’s selloff in prices. The bank finds the pace of declines in U.S. crude inventories encouraging, with an acceleration in draw downs expected through the second quarter as OPEC cuts output and demand grows, according to a report dated April 20. Meanwhile, a mid-week slide in prices was driven by crude trading through its 50-day and 100-day moving averages, Goldman said. Goldman is reiterating its confidence in oil at a time when investors are fretting over whether U.S. production, which has climbed to the highest since August 2015, will undermine curbs by the Organization of Petroleum Exporting Countries and its allies. After posting three straight weekly gains on expectations OPEC will extend its supply […]

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