Goldman Sachs: Oil prices could rally above $ 50 on OPEC output cut
|Analysts at Goldman Sachs published their latest preview on Wednesday’s OPEC meeting and its subsequent impact on oil prices.
Key Headlines via Livesquawk:
If the proposed OPEC production cut to 32.5 Mb/D is agreed to, we would expect prices to rally to the low $50s/Bbl, with observed implementation required to support prices further
If no deal is reached, our expectation of rising inventories through 1H17 would warrant prices averaging $45/Bbl through next Summer"
With the Brent market in our view only pricing in a 30 pct probability of a deal being reached and the option market pricing in a $6/bbl move, we believe that a move to below $40/bbl would be difficult to sustain
Even in the absence of a cut, expects oil market to move into deficit by 2h17
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