Goldman Sachs - Shale output may be about to surge in coming weeks
|Reuters is reporting investment bank Goldman Sachs take on the oil markets-
- The historical lag between prices and rig response suggests that drilling may be about to surge in coming weeks.
- Beyond the headline rig count, we find that it is the IG producers that have continued to steadily increase their drilling... private producers still lagging.
- The expectation for strong oil demand growth and high OPEC compliance, we reiterate our constructive forecast on oil prices with global inventories set to fall further below their 5-year average levels through 3q18".
- The restraint exhibited by producers so far leaves us comfortable with our 1.1 MB/d us crude oil production growth forecast for 2018".
- US shale oil drilling response has started, although the increase in the rig count remains modest so far.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.