Near-term oil market fundamentals are deteriorating, and oil prices are close to a bottom, according to a recent research note from Goldman Sachs’ Equity Research team. Goldman’s analysis shows that global oil demand growth is slowing, and storage facilities are rapidly reaching capacity. As a result, there is a high chance refineries will start to shut off production this year, forcing producers to shut off production or dump their oil. If/when this demand shock hits the market, it’s possible oil prices will bottom, which would be welcome news for “The Oil G-d”. Oil demand growth slowing According to Goldman, the latest datapoints suggest a…
Goldman Sachs: Oil Is Approaching A Bottom
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk