Oil at US$39? Two factors that could stop the oil rally dead in its tracks in the short term

, Canada

Oil prices are surging after Goldman Sachs joined the bandwagon of forecasters predicting oil's chronic issue of oversupply is finally being resolved

Oil prices are surging after Goldman Sachs joined the bandwagon of forecasters predicting oil’s chronic issue of oversupply is finally being resolved.

The influential Wall Street bank has been stubbornly bearish on oil for the past few months even as rivals Citigroup Inc,, Barclays Plc, Bank of America Merrill Lynch and RBC Capital Markets have been predicting a recovery in the past few months.

“The physical rebalancing of the oil market has finally started,” Goldman said. The bank upgraded its U.S. crude price forecast for the second half of 2016 to US$50 a barrel from US$45 forecast in March.

U.S. crude benchmark Western Texas Intermediate for June shot up US$1.44, or 3.1 per cent, to US$47.65 a barrel on the New York Mercantile Exchange, its highest level since November 4. Oil has now climbed more than 75 per cent from its year’s low of US$26 in mid-February.

Related

No Comment

  • Hello There. I discovered your blog the use of msn. This is a really neatly written article.
    I will be sure to bookmark it and come back to learn more of your helpful
    information. Thank you for the post. I’ll certainly return.

Leave a Reply

*