United States Oil Fund (USO)

[eFinanceMarkets]

Goldman: New projects, shale boom could trigger oil oversupply by 2018-19
New production projects and a fresh shale boom could boost oil production by 1M bbl/day Y/Y and result in an oversupply in the next couple of years, Goldman Sachs analysts say.
"OPEC's decision in November 2016 to cut production was rational... [but] the unintended consequence was to underwrite shale activity through a bullish credit market at a time when delayed delivery of the 2011-13 capex boom could lead to record non-OPEC production growth in 2018," Goldman says.
Goldman expects the industry to bring "onstream a multi-year pipeline of giant developments that tails off only by 2020."