The OPEC deal to cut oil production may provide a short-term support for prices, but chances are it won't change the supply outlook much, Goldman Sachs said.
Goldman said in a note to investors that it was sticking with its forecasts for WTI at $43 a barrel for the end of this year and $53 a barrel in 2017. The investment bank had cut its year-end forecast this week from $50 a barrel.
"If this proposed cut is strictly enforced and supports prices, we would expect it to prove self-defeating medium term with a large drilling response around the world," Goldman's analysts said.
