GS: Oil Prices Are Heading Higher As Supply Falls

GS: Oil Prices Are Heading Higher As Supply Falls

Thanks to fundamental volatility, the oil market has gone from nearing storage saturation to being in deficit much earlier than many analysts were expecting, that’s according to a new report from Goldman Sachs’ commodities research department.

Supply disruptions in Nigeria, along with a faster than anticipated decline in non-OPEC production and higher than expected global demand for petroleum products, are the three factors that have thrown the oil market into a deficit, from the supply surplus experienced for much of the past 12 months.

Also see Andy Hall: Oil Could Be Headed To $80 In Next 12 Months

As a result, Goldman...