• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 12 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 35 mins Tesla Begins Construction Of World’s Largest Energy Storage Facility
  • 20 hours Trump Hands Putin Major Geopolitical Victory
  • 5 hours America Could Go Fully Electric Right Now
  • 2 hours Will any journalist have the balls to ask Kamala if she supports Wall Street "Carried Interest" Tax Loophole
  • 14 hours Those Nasty White People and Camping Racism
  • 2 hours In 1,267 days, Trump has made 20,055 false or misleading claims
  • 9 hours COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 3 hours .
  • 2 hours Brent above $45. Holding breath for $50??
  • 4 hours Buying votes is cool now.
  • 15 hours The Truth about Chinese and Indian Engineering
  • 1 day Oil Tanker Runs Aground in Mauritius - Oil Spill
  • 2 days China wields coronavirus to nationalize American-owned carmaker
  • 2 days Open letter from Politico about US-russian relations
  • 2 hours The World is Facing a Solar Panel Waste Problem
President Trump Unveils “Historic” Israel-UAE Peace Plan

President Trump Unveils “Historic” Israel-UAE Peace Plan

President Trump just announced a "historic"…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

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





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