The oil market could swing into a surplus in early 2019 as spare capacity is deployed, Goldman Sachs said in a note to clients cited by Reuters. The investment bank’s warning might not have an immediate effect on prices as traders are at the moment too preoccupied with the worry that OPEC’s spare capacity is at a historic low, but once it sinks in, prices could reverse their climb. “While upside price risks will prevail for now, fundamental data outside of Iran has not turned bullish in our view,” the investment bank’s analysts said in the note. “We expect fundamentals to gradually become binding by early 2019 as new spare capacity comes online.” Goldman’s analysts said production in Libya and Nigeria was higher than expected, by 300,000 bpd, and coupled with Saudi Arabia’s production ramp-up and the political stabilization of Iraq, which improved prospects for higher output from Kurdistan, […]