The latest from Goldman Sachs on what the cut means
(ps. Details of the OPEC agreement here: OPEC agrees to cut by 1.2 mbpd to 32.5 mbpd - delegate)
- The announced 1.2 m b/d production cut with buy in from Iran and Iraq is supportive of oil prices
- WTI and Brent crude prices up $4/bbl so far today
- Puts prices close to the Goldman Sachs December $50/bbl forecast
Goldman Sachs say catalysts for any further rally in oil prices:
- Will need to come from confirmation of participation by non-OPEC producers
- Evidence of compliance by OPEC producers
- More clarity on what Iran has agreed to do (given conflicting numbers in the official agreement)
Pretty straightforward stuff from Goldman Sachs here
