Goldman Sachs' 30 Nov report via Bloomberg
Its analysts are saying that the OPEC deal this week cuts the risk of a surprise supply gain as well as excess draws in stockpiles.
"This leads us to reiterate our view that long-dated implied volatility remains too rich. Combined, these point to potentially even greater backwardation than we currently project through 2018 although with lower deferred prices".They argue that OPEC's assessment of the medium-term supply response to higher prices as too conservative, with forward prices above the industry's marginal cost.
Fully story can be found here.
Yesterday, OPEC and its partners agreed to extend production cuts to all of 2018 - and even got Nigeria and Libya to join in on the pact as well.
Brent is now trading 0.67% higher on the day at $63.05, while WTI crude is up 0.44% to $57.65.