• 3 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 5 minutes Could Tesla Buy GM?
  • 11 minutes Global Economy-Bad Days Are coming
  • 17 minutes Venezuela continues to sink in misery
  • 4 hours OPEC Cuts Deep to Save Cartel
  • 4 hours What will the future hold for nations dependent on high oil prices.
  • 1 day End of EV Subsidies?
  • 11 hours Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 5 hours Price Decline in Chinese Solar Panels
  • 8 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 11 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 21 hours Permian Suicide
  • 1 day GOODBYE FOREIGN OIL DEPENDENCE!!
  • 1 day Asian stocks down
  • 1 day Maersk's COO statment.
  • 1 day IT IS FINISHED. OPEC Victorious
Alt Text

Falling Rig Count Can’t Halt Oil Price Slide

Oil prices continued to fall…

Alt Text

Saudi Arabia Squeezed As OPEC Meeting Nears

Oil prices dipped in early…

Alt Text

Putin Looks To Capitalize On Waning U.S.-Saudi Relations

With U.S.-Saudi relations dwindling, Crown…

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: Oil Markets Are Nervous For No Reason

The extension of the OPEC/non-OPEC production cut pact through to the end of 2018, and especially the fact that the cartel and allies included an option to review progress in June, reduces the risk of both sudden supply surges and excessive drawdowns, Goldman Sachs says, noting that investor anxiety is higher than it should be.

The lowered risk of sudden sharp movements in supply and inventory drops “leads us to reiterate our view that long-dated implied volatility remains too rich,” Goldman Sachs analysts including Damien Courvalin and Jeffrey Currie said in a report dated November 30, as carried by Bloomberg.

It was none other than Goldman Sachs that warned just two days before OPEC’s crucial meeting that the outcome was uncertain, heightening oil market volatility further. In a research note, the bank said that there was no consensus among the participants in the deal about its extension, and there were signs of an acceleration in the rebalancing of supply and demand, which could dampen motivation to stick to the cuts.

After months of speculation and conflicting comments and hints from various oil officials, OPEC and the Russia-led non-OPEC producers part of the deal agreed on Thursday to continue restricting production through the end of 2018, as expected. But the partners also included the phrasing:

“In view of the uncertainties associated mainly with supply and, to some extent, demand growth it is intended that in June 2018, the opportunity of further adjustment actions will be considered based on prevailing market conditions and the progress achieved towards re-balancing of the oil market at that time.”

According to Bloomberg’s Javier Blas and Jack Farchy, the ‘easy smooth’ meeting and the OPEC ‘win’ in extending the pact until 2018 is just on the surface, while the tough job has been left for next year when the cartel and friends have to start serious talks on an exit strategy.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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