Emerging Market Demand to Support Oil Prices, Goldman Sachs Says

Oil prices will be supported by emerging market demand, a lack of spare supply and improvements in transporting U.S. output, Goldman Sachs Group Inc. said.

Relatively low oil inventories around the world, limited spare capacity in the Organization of Petroleum Exporting Countries and continued demand growth among emerging-market economies will sustain the market’s current “backwardation,” where prices for immediate and near-term delivery exceed those for later, Goldman Sachs said in a report today.