Goldman Says for a Peek Into Oil's Future, Go Back to 1990s
- Bank sees further backwardation, raises 2Q Brent oil forecast
- Prospect of production rebound to weigh on long-dated futures
Photographer: Andrey Rudakov/Bloomberg
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The future of the oil market may resemble the past -- specifically the 1990s -- according to Goldman Sachs Group Inc.
That’s when prices remained steadily in backwardation, a market structure where near-term futures are costlier than later contracts -- reflecting tight supplies in the present and ample barrels further out, analysts including Damien Courvalin wrote in an April 8 report.