Near-term oil market fundamentals are deteriorating, and oil prices are close to a bottom, according to a recent research note from Goldman Sachs' Equity Research team.
Goldman's analysis shows that global oil demand growth is slowing, and storage facilities are rapidly reaching capacity. As a result, there is a high chance refineries will start to shut off production this year, forcing producers to shut off production or dump their oil. If/when this demand shock hits the market, it's possible oil prices will bottom, which would be welcome news for "The Oil G-d".
Oil demand growth slowing
According to Goldman, the latest datapoints suggest a deceleration in oil demand driven by weakening emerging market growth. For example, between July...
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