Goldman Sachs: ‘Cautiously Optimistic’ On Oil Expenses As Supply-Demand Rebalancing

The rebalancing in the oil market is accelerating, said Goldman Sachs in a note on Thursday.
Robust demand in particular has sent spot prices outperforming two-year forward West Texas intermediate prices by $2.40 barrel over the past month, Goldman analyst Damien Courvalin wrote in the note.
“While OPEC’s production path remains uncertain, recent fundamental oil data have come in even better than we had expected,” Goldman said.
Europe, the U.S., India and China were driving up consumption and Goldman expected this strong demand growth to remain in place through the second half of the year.
“Oil prices have rebounded over the past month due to large inventory draws, falling U.S. rig count and strong demand demand data, with prices rising above Goldman’s September 2017 forecast of $50 a barrel Brent, the investment bank noted.

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