“Shock And Awe” Needed From OPEC To Fend Off Below $40 Oil 11/07/17 •lweb.es/f2883 •bit
Goldman Sachs says that OPEC must increase output cuts aimed at shrinking a global glut with little public announcement in order to jolt investors. Without such action and no evidence of sustained declines in inventories as well as U.S. drilling activity, prices could slump below $40. “We continue to believe that there is another opportunity for OPEC to increase the cuts, but that this should be done in a “shock and awe” manner, with little public announcement.” Deeper cuts are currently not on the agenda, according to OPEC Secretary-General Mohammad Barkindo.