Goldman Sachs vindicates Saudi oil strategy


handout photo provided by the Jimmy Carter Library shows former US President Jimmy Carter signing the nation's first national energy legislation, five major bills aimed at conserving energy, reducing dependence on foreign oil, and developing renewable sources of energy, on 09 November 1978.

Goldman Sachs vindicates Saudi oil strategy

On a report published on Friday, Goldman Sachs Group forecasts that oil prices could go as low as $20 a barrel. The same day, Commerzbank announced a similar tumbling oil forecast.

This is a reaction to both weak demand and oversupply. Whilst the weak demand is something no one can control, the supply glut is very much intentional.

Fundamentally, the Goldman Sachs prediction is that oversupply will diminish in the second half of 2016 as US shale producers are forced out of the market. The ...

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