Oil prices began to rise due to the publication of the report of Goldman Sachs, writes Reuters. The Bank predicted that the deficit in the oil market will occur in the second half of this year.
As writes Bloomberg, citing a report by Goldman pointed to the decline in oil production due to unexpected supply disruptions. This factor, along with steady demand, led to a “sudden stop” over the market, analysts say. In the end, the Bank has increased the forecast the price of WTI in the second half of 2016 to $50 per barrel from $45, which was predicted in March.
Supply disruptions, which, in particular, resulted in forest fires in Canada and the attack on pipelines in Nigeria, will keep the market in deficit in the second half of this year, Goldman expects.
The situation with excess supply in the market may resume in the first quarter of 2017 after elimination of supply disruptions from several countries, the authors of the report. This may impact the growth of production in Iran and Iraq, and increasing low-cost production, including Saudi Arabia, Kuwait, UAE and Russia.
Against the background of the forecast of the price of North sea Brent crude rose above $48 per barrel. At 9:40 GMT April futures traded stamps at $48,46/bbl. This is 1.32% higher than the previous close. WTI rose 1.30 percent to $46,81/bbl.