Oil hits six-month high as Goldman Sachs claims oversupply problems over – business live

Crude prices are heading back towards $50 per barrel for the first time since last November

Goldman: oil market no longer saturated
The agenda: Weak Chinese data pushes shares down

8.58am BST

Shares in BP and Royal Dutch Shell have risen by around 0.8% this morning, following the jump in the oil price.

8.53am BST

The price of oil is on the march again as Brent Crude Oil passes US $48 this morning…

8.46am BST

Goldman is also predicting that the oil market will remain in deficit until the end of the year.

However, it would then return to oversupply in 2017:

8.38am BST

Brent crude oil is bobbing around a six-month high, as traders digest Goldman’s claim that the market is now in deficit:

8.20am BST

The oil price has jumped this morning after Goldman Sachs declared that the long run of oversupply was coming to an end.

In a new report, the Wall Street firm argues that the oil market has actually flipped into deficit, due to various supply disruptions.

“The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected….

The market likely shifted into deficit in May … driven by both sustained strong demand as well as sharply declining production.”

7.56am BST

Good morning, and welcome to our rolling coverage of the financial markets, the global economy, the eurozone and business.

There’s a definite Monday morning feeling in the City today.

“We’re seeing that growth engines are losing momentum, and the growth outlook has turned soft as well.

It’s clear the government wants to manage down or re-anchor market expectation.”

Continue reading…