Reuters reporting a updated client note from the US investment bank
- still not adopting the view of crude prices falling to $20 per barrel as its baseline forecast
- does not see the market hitting storage capacity constraints
" Barring a supply or demand/weather shock that shifts the balance by more than 340k barrels per day excess output can be stored for a longer time horizon before the surplus starts saturating markets and fuels a collapse in commodity prices"
The key theme for 2016 will be real fundamental adjustments that can rebalance markets to create the birth of a new bull market, which we still see happening in late 2016"
While accepting that there was a high concern on geo-political risk to further oil price falls Goldmans say there was little threat of such factors affecting suppl as a fair amount is already offline.
In December Goldmans did say that oil could fall as low as $20 but gave that level quite a low probability rating.
Brent and WTI currently off session lows at $29.60 and $29.58 but the ongoing pressure continues.
