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Goldman Surprised by Sudden Oil-Market Turn as Glut Vanishes

  • Bank raises near-term oil forecast on market’s flip to deficit
  • Return to output surplus seen in early 2017 as supplies gain
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Oil Advances as Goldman Forecasts a Deficit

Updated on

The global oil market has flipped to a deficit sooner than Goldman Sachs Group Inc. had expected.

A decline in production driven by unexpected supply disruptions, as well as sustained demand, have resulted in a “sudden halt” to the output surplus, Goldman analysts Damien Courvalin and Jeffrey Currie wrote in a report dated May 15. Other banks such as Morgan Stanley, Barclays Plc and Bank of America Corp. also noted that supply losses are leading markets to rebalance.