Article written by Tyler Durden, ZeroHedge.com
S&S recently wrote on a Goldman Sachs report, saying that they expect the price of oil to stay around $50 for the next three years.
Today, OPEC announced that the “worst is over” for the oil market, causing Crude future prices to spike in Thursday morning trading.
Secretary General of the organization, Mohammad Barkindo, said that OPEC is going to continue its oil market management and that the “worst is over”. The comments came as OPEC unveiled its annual World Oil Outlook.
Global inventories of the black stuff are currently at 220 million barrels, which is above the 5-year average (according to Bloomberg).
The price of Brent had previously been rising steadily as President Trump returned to the White House after his brief stint at Walter Reed.
Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, warned oil short sellers not to bet against the price of the commodity, going as far as saying there could be a change of direction in production policy forthcoming as the price of oil continued to slide during the pandemic.
Abdulaziz also has to deal with non-compliant members as well as short sellers, with the UAE only making 10% of its pledged cuts for August.
Can we get to $60 ?
Works Cited:
https://www.zerohedge.com/energy/crude-futures-spike-opec-comments-worst-over-oil-market