FX.co ★ Goldman Sachs says oil market likely shifted into deficit

"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," Goldman Sachs said.
According to experts, declining production capacity due to unforeseen circumstances led to a narrowing surplus on the market. Particularly, wildfires in Canada and terrorists attacks on oil pipelines in Nigeria triggered the oil deficit in the second half of 2016. Analysts say supply could flip back into a surplus only in the first half of 2017.
Oil price will rise to $50 a barrel in the second half of 2016 from the March level of $45 a barrel, Goldman Sachs predicts.
Moreover, the forecast for WTI crude for the second quarter of 2016 has been raised to $45 a barrel from $35 a barrel. In the third quarter, oil prices are seen to advance to $49 a barrel from $40 a barrel, and to $51 a barrel from $45 a barrel in the fourth quarter.
Previously, senior economist at Alfa Bank Alan Kaziev said that Brent crude could cost about $51 a barrel in the near future.
The US Energy Information Administration released its survey that showed that oil will remain the world’s main source of energy in the next 25 years.