Group seen facing market share, revenue growth challenges Backwardation needed to prevent “unbridled” U.S. shale growth As the oil market responds skeptically to OPEC’s output-cut deal , Goldman Sachs Group Inc. says the group has some challenges to tackle. The organization will face the test of defending market share and generating revenue growth as it transitions from the curbs, the bank said in a May 25 report. Additionally, backwardation — when near-term crude prices are higher than those for later months — will be needed for the cuts to achieve their goal of shrinking an oil inventory glut, and prevent an “unbridled” increase in U.S. shale production, according to Goldman. “OPEC needs to create a credible threat that the oil market may return into surplus to finally slow the capital inflows into shale,” analysts including Damien Courvalin wrote. “This could be achieved by both expressing the goal of growing […]