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Goldman: Bad things need to happen for oil prices to rise

An oil supply glut has put pressure on oil prices. In the absence of voluntary production cuts, Goldman Sachs analysts say unplanned outages and disruptions may be necessary for prices to rise.

Oil prices (CLN16.NYM) have been kept at low levels largely due to the glut in global supply.

While low prices have been bad news for the industry (OIL) and the oil-driven economies, producers have been reluctant to cut back for fear of losing market share.

In the absence of voluntary production cuts, Goldman Sachs analysts say unplanned outages and disruptions may be necessary for prices to rise.

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