Goldman Sachs: oil prices may drop due to filling of storage facilities of petroleum products

NEW YORK, October 26. World oil prices may drop significantly due to the filling of the storage products in the U.S. and Europe that might lead to a further drop in demand for raw materials. With such a forecast was made today by analysts at investment Bank Goldman Sachs.

“The level of use of storage of refined petroleum products in the U.S. and Europe are now close to historic highs after load as an indicator of refining capacity has almost reached record levels, and growth in demand, especially for gasoline, was insignificant, while imports from the East have increased due to the expansion of production in oil refineries and increasing exports from China”, – quotes Agency Reuters research note to clients Goldman Sachs.

“It threatens a repeat of the events of 1998 and 2009, when oil storage were completely full, which led to a sharp drop in crude oil prices”, – experts remind.

Although the Bank considers it unlikely the achievement of complete filling of storages of oil products, utilization rates of close to maximum. As a result Goldman Sachs analysts do not expect that this year the oil market will reach a balanced state at which the levels of supply and demand are mismatched.