Goldman Sachs: oil price sell-off due to concerns of excess supply in 2019 - Reuters News
|The sharp sell-off is likely a result of growing concerns that supplies would exceed demand in 2019, according to Goldman Sachs.
Key points (Source: Reuters)
- Technical positioning factors are exacerbating volatility.
- Fall in oil prices also reflects low trading liquidity ahead of Thanksgiving, broader cross-commodity and cross-asset sell-off, as growth concerns continue to mount.
- Expects high price volatility until evidence that oil market fundamentals are improving, requiring a decline in OPEC production, signs that demand growth is resilient.
- Recovery in prices will require that the Brent forward curve returns into backwardation from its sudden and significant flattening.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.