| Goldman Sachs said on Thursday it sees a high risk of oil prices declining further on the back of OPEC's decision to maintain high output and a continued build in European refined products stocks. The high financial stress being faced by oil producers due to the low oil price environment can halt oil surplus by the fourth quarter of 2016, mainly through declining U.S. oil production.
However, Goldman said the required rebalancing of the oil market is still far from achieved partly as the U.S. rig count and production guidance remain too high for the required supply decline. "Financial stress may prove too little too late to prevent the market from having to clear through operational stress with prices near cash costs to force production cuts, likely around $20 per barrel."..............................................Full Article: Source
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