“The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected,” Goldman Sachs analysts said in a research note published on Sunday. “The physical rebalancing of the oil market has finally started,” according to the bank, which has been among the most bearish on the outlook for surpluses and prices. Goldman raised its near-term forecasts for WTI by around $10 per barrel in both the second and third quarters of 2016 (“Fundamental volatility creates uncertain path for oil rebalancing”, Goldman Sachs, May 15). In many ways the bank is playing catch up, because WTI has already risen $20, almost 80 percent, from its low on Feb. 11. Goldman is exceptionally well connected with the hedge […]