Monday , January 18 2021

Goldman Sachs expects oil price volatility in the coming weeks

Goldman Sachs said Wednesday on Wednesday that it expects oil markets to remain extremely volatile in the coming weeks.

Oil markets rebounded somewhat on Wednesday, after falling more than 6% on the eve in large volumes.

"This will be a key catalyst for stabilizing prices and, ultimately, will be higher," the bank said in a statement.

Such an incentive will include concrete evidence that OPEC production is “declining” and more evidence of strong demand, he said.

The Organization of Petroleum Exporting Countries (OPEC) calls on independent producers, including Russia, to participate in production cuts of between 1 and 1.4 million barrels per day.

The bank reports that the price collapse again reflected “concerns about oversupply in 2019 … and (f) a wider sale of goods and assets, as growth problems continue to grow.”

The investment bank said that a sharp drop in demand or a shortage of OPEC products pose a serious threat to the recovery of prices from current levels.

“Although both options are unlikely, we are more concerned about the second factor, since such a shift leads to a steady decline in oil prices,” the bank said.

Source link