20 Mar 2015
FX devaluations behind drop in oil - GS
FXStreet (Guatemala) - Analysts at Goldman Sachs explained supply, demand, technology and FX devaluations were all behind the recent drop in oil prices.
Key Quotes:
"We find that of the $60/bbl decline in prices, $35/bbl was driven by current fundamentals, of which roughly two-thirds was due to supply and one-third demand."
"Long-dated oil prices (which declined by $25/bbl) account for the remainder of the overall decline."
"Here we see two key drivers: first, the scalability of shale; and second, cost deflation, which has been reinforced by efficiency gains and commodity currency devaluations."
Key Quotes:
"We find that of the $60/bbl decline in prices, $35/bbl was driven by current fundamentals, of which roughly two-thirds was due to supply and one-third demand."
"Long-dated oil prices (which declined by $25/bbl) account for the remainder of the overall decline."
"Here we see two key drivers: first, the scalability of shale; and second, cost deflation, which has been reinforced by efficiency gains and commodity currency devaluations."