GS: OPEC now an inventory manager rather than price setter - CNBC

According to Goldman Sachs analysts, the Organization of the Petroleum Exporting Countries (OPEC) must now weigh the relative benefit of stability by extending production cuts versus the risk of long-term market share loss, CNBC reports.

Key Quotes:

"Our database of the industry's new oil & gas developments shows that 2017-19 is likely to see the largest increase in mega projects production in history, as the record 2011-13 capex (capital expenditure) commitment yields fruit"

"A key unknown is how well the industry will delivery (on the projects)… the industry has been poor at delivering historically, but has much improved in the last three years"

"OPEC's decision in November 2016 to cut production was rational, in our view, and fit into its role of inventory manager of last resort"

"However, the unintended consequence was to underwrite shale activity through a bullish credit market at a time when delayed delivery of the 2011-13 capital spending boom could lead to record non-OPEC production growth in 2018"