Wall Street Has More Bad News for OPEC: 2018 Doesn’t Look Great
- Risk of huge surpluses if OPEC fully revives output: Goldman
- OPEC will need to continue curbs for all 2018: Morgan Stanley
Market Strategist Sees Lots of Reasons for Oil Skepticism
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As oil prices sag despite OPEC’s renewed efforts to shore up world crude markets, Wall Street banks have more bad news for the producer group: the outlook for next year isn’t great either.
Oil futures have lost 8 percent since the Organization of Petroleum Exporting Countries and its allies agreed on May 25 to keep output constrained through the first quarter of 2018 in a bid to clear a global glut. While Goldman Sachs Group Inc. expects their strategy to ultimately succeed, they warn the surplus may re-appear once the curbs end. Morgan Stanley and JPMorgan Chase & Co. say the group will have little choice but to stick with the cuts even longer.