‘Wall of supply’ to block oil rally at $55, Goldman Sachs says

Baku, October 6, AZERTAC

Oil’s rally will stall at $55 a barrel as U.S. shale drillers get back to work and a “wall of supply” from investments made over the past decade hits the market, Goldman Sachs Group Inc. said.

Global oil markets are set to remain “very oversupplied” in 2017 amid the return of disrupted output in Nigeria and Libya, resilient U.S. shale production and the start of major projects commissioned over the past 10 years, Goldman’s head of commodities research Jeff Currie said in a Bloomberg television interview.

“We’re still seeing a lot of oil enter this market,” Currie said in an interview with Tom Keene and Francine Lacqua. “It’s hard for this market to go above $55.”

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