OPEC deal cuts risk of surprise supply gain, excess stock draw - Goldman Sachs
|According to Goldman Sachs, the OPEC deal has reduced the risk of both unexpected increases in supply as well as excess draws in stockpiles.
Key points (Source - Bloomberg)
- Reiterates view that long-dated implied volatility remains too rich.
- Scope for even greater backwardation than we currently project through 2018 although with lower deferred prices.
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