• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 min Which producers will shut in first?
  • 1 hour The Most Annoying Person You Have Encountered During Lockdown
  • 58 mins We are witnesses to the end of the petroleum age
  • 3 hours Its going to be an oil bloodbath
  • 48 mins Breaking News - Strategic Strikes on Chinese Troll Farms
  • 4 hours As Saudi Arabia Boosts Oil Output, Some Tankers Have Nowhere to Go
  • 9 hours Death Match: Climate Change vs. Coronavirus
  • 15 hours How to Create a Pandemic
  • 1 min >>The falling of the Persian Gulf oil empires is near <<
  • 26 mins Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 2 hours Natural gas price to spike when USA is out of the market
  • 14 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 16 hours Where's the storage?
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




Oilprice - The No. 1 Source for Oil & Energy News