Goldman Says ‘Stellar’ Demand May Fast-Forward OPEC’s Exit

20 Dec 2017   OPEC, Prices

Global oil inventories will have re-balanced by mid-2018 Backwardation forecast to strengthen further in second quarter OPEC’s desire to clear the global oil inventory overhang may come sooner than expected, enabling the group to exit from its production cuts early, according to Goldman Sachs Group Inc. Global stockpiles will remain below seasonal levels and continue to shrink through the second quarter of next year, said the bank. The market will have re-balanced by mid-2018, fast-forwarding OPEC’s exit from production cuts to the second half of the year, according to Goldman. It kept its forecast for Brent crude at $62 a barrel. Goldman is one of the most bullish banks for oil next year and this month boosted its price forecast for Brent, the benchmark for more than half the world’s oil, on the producers’ strong commitment to the cuts. Prices are on course for a second yearly gain after […]

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