Goldman Sachs expects non-OPEC+ production growth to slow with decline in Brent prices
1. Goldman Sachs predicts slowed non-OPEC+ output growth with declining oil prices. 2. A $10 drop in oil prices may reduce output growth by 0.3 mb/d.
FAQ
Why Bearish?
The forecasted slowdown in non-OPEC+ output growth could lead to lower oil prices, impacting BNO negatively. Historical trends show that reduced supply often correlates with declining prices, affecting ETFs like BNO that track oil performance.
How important is it?
The reported oil price predictions directly link to BNO's performance due to its nature as an oil ETF. The changes in output estimates can significantly influence oil prices, thereby impacting BNO's value.
Why Short Term?
The expectation of output reductions is immediate; this can directly influence oil prices and BNO in the near term. Past instances of supply adjustments have resulted in rapid price fluctuations.