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Goldman Says Ignore the Technical, Savor the Fundamental on Oil

  • Bank says recent selloff in prices driven by technical reasons
  • Goldman sees pace of U.S. inventory declines as encouraging
Bloomberg business news

Oil Heads for Biggest Weekly Loss Since March

Updated on

Goldman Sachs Group Inc. says there’s no fundamental evidence in the oil market to justify this week’s selloff in prices.

The bank finds the pace of declines in U.S. crude inventories encouraging, with an acceleration in draw downs expected through the second quarter as OPEC cuts output and demand grows, according to a report dated April 20. Meanwhile, a mid-week slide in prices was driven by crude trading through its 50-day and 100-day moving averages, Goldman said.