• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 37 mins Is Europe heading for winter of discontent with extensive gas shortages?
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Hopes Are Dashed For International Oil Companies In North Iraq
  • 12 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 20 hours The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 1 min "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 7 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Goldman: OPEC To Clear Supply Glut By April

Goldman Sachs expects OPEC to succeed in clearing what it has deemed excessive oil supply by April, when the latest production cut deal will be reviewed at a meeting of the cartel and its partners.

Goldman’s commodity chief Jeffrey Currie told CNBC "OPEC is pursuing a shock and awe strategy," cutting production faster and deeper than the investment bank expected. This suggests that supply will tighten sufficiently by April for OPEC to call the mission accomplished.

After that, Currie said, OPEC will probably take a month or two to announce how it will proceed with dialing back the cuts and this would discourage U.S. producers from boosting their own production further, bringing about another price crash.

While it’s safe enough to say prices will inch down when OPEC announces the end of the cuts, it is probably the only thing that’s safe to say. Currie told CNBC’s “Closing Bell” that prices could rebound to above US$70 for Brent thanks to the tighter supply and strong demand. But just a month ago worries about oil demand pressured prices and kept them from climbing much higher. In other words, nothing is certain, especially where oil prices are headed.

The uncertainty becomes even more pronounced if we factor in a recent statement by Saudi energy minister Khalid al-Falih that he was willing to extend the production cuts into the second half of the year. Now, this would certainly support prices but leave them vulnerable to economic data from Asia specifically, where everybody looks to gauge future oil demand trends.

The latest from China in this respect already pressed oil prices lower: Beijing has revised down the forecast for the country’s economic growth by half a percentage point to 6.5 percent. Prime Minister Li Keqiang announced a series of measures aimed at stimulating growth, but oil prices will remain vulnerable, motivating an extension of the cuts.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Rudolf Huber on March 11 2019 said:
    OPEC still lives under the impression that they can control markets. Nothing that happened over the last 10 years provides clues to confirm this, but they don't lose faith. Such refusal to face the obvious is admirable even if its also a bit childish. I don't like what I see, so I will pretend it does not exist. Like a child that sings loudly in order to not hear what it does not want to hear. Except that - this is not a child. This is still the premier oil cartel. There are lots of people which take whatever they say at face value. An opportunity for those with eyes to see - maybe?

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News