Oil market needs deeper OPEC cuts to rebalance – Goldman Sachs

Analysts at Goldman Sachs, noted in its latest oil market report published late-Wednesday, oil prices may remain lower if the OPEC doesn’t impose deeper output cuts.

Goldman Sachs lowered their three-month forecast for West Texas Intermediate (WTI) to $47.50 a barrel from $55.

Key Quotes via Bloomberg:

“Unexpected rebounds in those countries, which were exempted from OPEC’s November deal to curb output, could offset inventory declines expected in the third quarter of 2017”

“This threatens to close the window of time for stocks to normalize before OPEC cuts end and raises the concerns that OPEC will then ramp up production to defend market share” 

“The approach adopted so far by OPEC, akin to a central bank, has ultimately proved self-defeating by cutting too little but reassuring too much”