- Warning supplies will continue to outpace demand regardless of what OPEC might say or do at its meeting this week, the Goldman Sachs team of Damien Courvalin and Jeffrey Currie cut their forecast for crude oil in Q4 to $43 per barrel from $50.
- "We find that the potential for less disruptions and still relatively high net long speculative positioning leave risks skewed to the downside into year-end."
- They expect a ramp in production from places like Kazakhstan, Russia and Canada, and with the demand outlook unchanged, this makes for an inventory build of 400K barrels per day in Q4 vs. their previous estimate for a 300K barrel per day draw.
- Texas Tea is down 1.7% to $45.16 per barrel. USO -1.45% premarket.
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, UHN, SZO, OLEM, OILX