Conditions for eventual oil market rebalancing are now in place, but the New Oil Order will prevent a rapid recovery in prices, that’s according to Goldman Sachs’ 23 February Oil Gauge equity research report.
According to the report, while the potential agreement between Russia and members of OPEC to freeze production at record levels does little to improve the oversupplied market, it accurately reflects the New Oil Order, by which production cuts would incentivize shale producers to ramp rapidly up activity again.
Saudi Arabia Crude Oil Production At 20 Year High
However, the conditions for an eventual rebalancing are now falling into place as over the past month further signs of rebalancing from non-OPEC have emerged. Specifically, declines from the...
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