• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 12 hours Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 13 hours And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 22 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 2 days Maduro Asks OPEC For Help Against U.S. Sanctions
  • 1 day Former United Nations Scientist says the UN is lying about Global Warming and Sea-Level changes
  • 1 day Prospective Cause of Little Ice Age
  • 24 hours And the War on LNG is Now On
  • 33 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 22 hours L.A. Mayor Ditches Gas Plant Plans
  • 2 days Qatar Petroleum, Exxon To Proceed With $10 bln Texas LNG Project
  • 2 days Europe Adds Saudi Arabia to Dirty-Money Blacklist
  • 2 days Solar Array Required to Match Global Oil Consumption
Alt Text

Oil Rises Despite Rising Oil, Product Inventories

Oil prices rose on Wednesday…

Alt Text

Maduro Asks OPEC For Help As U.S. Sanctions Bite

Venezuela’s President Nicolas Maduro has…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Goldman Sachs: Global Oil Inventories To Continue Dropping

Although crude oil inventories in the U.S. are expected to rise, the global oil market is showing signs of tightness and will continue to see crude stocks draw down, Goldman Sachs has said in recent note.

“We do not view the recent U.S. builds as derailing our forecast for a gradual draw in inventories, with in fact the rest of the world already showing signs of tightness,” Reuters quoted Goldman analysts as saying on Tuesday.

In addition, Goldman Sachs expects the higher base demand growth this year – projected at 1.5 million bpd – to fully offset increased production in the U.S.

However, the oil market needs to see “show me the activity:” real demand and stock drawdown, Goldman noted, as reported by CNBC.

“Markets need to see that the OPEC supply cuts generate real inventory draws and the strong manufacturing survey and Chinese credit data create real activity. In other words, ‘show me the activity:’ real demand, real stock draws and empty warehouses,” according to the analysts.

Goldman left unchanged its Brent and WTI price forecasts for this year, seeing the price of Brent rising to US$59.00 and WTI – to US$57.50 per barrel in the second quarter, and then falling to US$57 and US$55 per barrel for the remainder of the year. Related: ‘’U.S. Oil Production To Soar By 3.5 Million Bpd Over The Next Five Years’’

Just as OPEC started implementing the supply-cut deal to boost prices and rebalance the market, Goldman Sachs said in early January that the reduced supply in the first half of 2017 would move the market into deficit and draw down the current large oversupply.

However, recent rising inventories in the U.S. and the talk that OPEC might be prepared to extend the production cuts beyond the initial expiry date at end-June support the theory that the global inventory drawdown may not come as early as it was expected.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Dan on February 23 2017 said:
    I am seeing some serious increases in traffic in Northern Great Lakes of Semi Traffic and sunny day baby boomers with their must have mega pickup trucks. Seems a little early for the retail switchover to Spring goods but traffic is heavy for trucking. Small stores like hardwares, lumber, feed stores selling premium pet foods and general merchandise seem busiest. Good dinners also busy. Fly over America, shopping. Think it shall be very good year for farmers markets and small retailers with large corporations having thrown themselves on sharpened spikes with their anti Hearthland America agenda the past 8 years and through the election and beyond. Go Trump, get out corporate America.
  • Bud on February 23 2017 said:
    U.S. Production is not a problem, as it could take years to match the drop in net imports that have already started according to EIA.

    If ICE trading can keep WTI below 60 while enabling FTM backward action, a big ask, inventories will draw while lower 48 production should grow slowly. There simply isn't enough cash flow.

Leave a comment




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