OPEC deal far from certain - Goldman Sachs
OilPrice.com is reporting that Goldman Sachs believes the outcome of OPEC’s meeting with its partners in the oil production cut this Thursday is uncertain.
“The push for a nine-month extension, four months before the cuts end and given an accelerating rebalancing further stands in the face of prior comments that the cuts should remain data dependent to assess their effectiveness,” says Goldman Sachs commodity research desk.
It adds further even if the OPEC and Russia agree to a six-month extension of the output cut deal instead of nine months, still oil prices could rise.
The cartel meets this Thursday to discuss a possible extension of the output cut deal that has already pushed Brent futures structure into backwardation.