Goldman Sees Little Chance of an OPEC Cut, Despite the Litany of Lies Being Purported of an Impending Deal

Both Chinese and Saudi Arabians are taught to lie upon birth. Even before they’re instructed how to walk, their thieving parents teach them the art of sophistry — a keen ability to deceive others for gain. These men grow up and they lead industry in their countries, become important liars for nations filled with liars.

At OPEC, the very best of the liars descend upon the world, all speaking half truths with forked tongues, for the purposes of professional deception. I’m not going to link to past stories or dredge up excerpts of the myriad of lies that have been spoken through the media, regarding impending oil production cuts that never had a chance to begin with. Alas, here we are just 1 day before the meeting and Goldman is telling investors there’s only a 30% chance of a deal getting done.

The oil market is pricing in a 30 percent chance of producers reaching a deal to cut output at OPEC’s meeting in Vienna, according to Goldman Sachs Group Inc.

Global benchmark Brent crude may swing $6 a barrel on Wednesday, based on implied volatility for options contracts, analysts including Damien Courvalin and Jeff Currie said in a report Monday. Futures would rally into the low $50s a barrel and average $55 over the first half of next year if the group agrees to a cut, according to the bank. Failure to reach an accord would mean prices would average $45 a barrel through the summer.

Prices are tumbling again. But don’t worry, another rumor is right around the corner.