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Goldman Sees Oil Staying Lower for Longer to End Supply Glut

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Goldman Sachs Group Inc. says crude prices need to remain lower for a longer time to allow the oil market to find equilibrium amid a supply glut.

Storage may be filled by the fall with global crude oversupply running at 2 million barrels a day and low-cost producers continuing to boost output, Goldman analysts including Jeffrey Currie said in a report on Thursday. Low prices are needed to offset productivity gains and keep investment to a minimum, the report said.