Goldman Sachs and Morgan Stanley Warn Oil Uncertainty to Persist - Bloomberg:
Oil’s gains risk being quelled by uncertainty over how the OPEC+ coalition will implement its deal to cut output, according to Goldman Sachs Group Inc. and Morgan Stanley.
While producers including Saudi Arabia and Russia defied market expectations as well as U.S. President Donald Trump late last week to pledge 1.2 million barrels a day of curbs, the lack of specific country allocations and exemptions for Iran, Venezuela and Libya cloud the market outlook, Goldman said in a report. For any sustained rally, a drop in stockpiles and evidence of the cuts being implemented are needed, it said.
“The need for this physical evidence emanates from both the surprisingly large surplus of the global oil market in the second half of 2018 as well the absence of a clear picture on the implementation of the cuts,” Goldman analysts Damien Courvalin and Jeffrey Currie wrote in a Dec. 7 report.
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