Goldman Sachs Sees Oil Bull Market Being Born in Today's Crash
- U.S. crude production to slump 575,000 barrels a day this year
- Global oil glut will give way to deficit in second half
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Oil will turn into a new bull market before the year is out as the price rout shuts down sufficient production to erode the global glut, according to Goldman Sachs Group Inc.
The crash in U.S. oil futures -- which sank back below $30 a barrel on Friday to a new 12-year low -- will send the nation’s shale-oil boom spinning into reverse in the second half of the year, the bank said in a report. As U.S. production slumps by 575,000 barrels a day, global oil markets will tip from surplus to deficit, Goldman predicts.