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Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Editor’s Picks 16 May 2016 at 5:55 GMT

Oil prices jump as Goldman Sachs says market flips into deficit

Reuters
Oil prices jumped over 1% on Monday after long-time bear Goldman Sachs said the market had ended almost two years of oversupply following global oil disruptions and flipped to a deficit. International Brent crude futures were trading at $48.50/barrel at 0255 GMT, up 67 cents, or 1.4%, from their last settlement. US West Texas Intermediate crude futures were up 68 cents, or 1.5% at $46.89/b. Supply disruptions from Nigeria, Venezuela, the United States and China triggered a U-turn in the oil outlook of Goldman Sachs, which long warned of overflowing storage and another looming crash in prices."The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," Goldman said, adding that the market "likely shifted into deficit in May ... driven by both sustained strong demand as well as sharply declining production." In Nigeria, oil major Exxon Mobil suspended exports from the country's biggest crude stream, Qua Iboe.
Read full article at Reuters
3y
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I can't help but be suspicious of GS reporting on oil....my gripe perhaps is the potential of bias ! This is a company that sells physical stock. Not only does it wholesale oil condensate it is ranked 7th on the Wall St ranking for physical gas/LPG trading and delivery. It's commods division called J.Aron is expanding where as global major players are contracting so I suspect GS shouldn't be giving guidance of any form as its too easy to believe they are talking the market up for their own gains. At the very least there should be a caveat by them declaring their own material interests when issue-ing overviews/guidance.

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