‘We are going into a “very, very tight oil market’ – Goldman Sachs

In an interview on the Bloomberg Surveillance show,  Michele Della Vigna, Head of Energy industry Research at Goldman Sachs, noted that the oil market is “eating very quickly” through OPEC’s spare capacity, so we are going into a “very, very tight oil market.”

Additional Comments (via Oilprice.com):

Oil demand continues to be strong.

There is no doubt that we are heading to slowing supply growth.

Vigna sees those factors as “a substantial risk to supply.”

“Amid this expectation for a tight oil market, Big Oil firms are now back to being the ‘oligopolies’ of mega projects, a position they last held in the 1990s. No one else can finance big developments.”