Based on the assumption that OPEC and Russia can agree to not fuck each other and cut production down to at least 33m barrels per day, Goldman believes oil can lift to $55 by mid 2017.
Naturally, this is all predicated around the idea everything remains status quo and that China doesn’t get their teeth kicked in by a Trump administration. In other words, the analyst community are partaking in collective cognitive dissonance — pretending the words coming out of the mouth of Trump never really happened.
Americanism not globalism is the credo.
“With greater confidence that the global oil market can finally shift into deficit later next year, we now believe that there is a strong rationale for low-cost producers to deliver a swift production cut to normalize inventories,” Goldman analysts including Damien Courvalin said in a research note.
“Oil fundamentals have weakened sharply since OPEC announced a tentative agreement” and the current glut will increase to about 700,000 barrels a day in the first three months of next year unless OPEC acts, according to Goldman Sachs. Any cut would have to come primarily from Saudi Arabia, Kuwait, the United Arab Emirates and Qatar, with other members keeping output steady at current levels through the first half of 2017, the bank said.
As such WTI and copper are lifting off, this time accompanied by gold.
The Turkey gods approach. It’ll take a fucking act of divine intervention to keep the markets down ahead of national festival.
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