‘Wall of supply’ to halt oil price rally

Oil’s rally will stall at $55 a barrel as US shale drillers get back to work and a “wall of supply” from investments made over the past decade hits the market, says Goldman Sachs Group.

Global oil markets are set to remain “very oversupplied” in 2017 amid the return of disrupted output in Nigeria and Libya, resilient US shale production and the start of major projects commissioned over the past 10 years, Goldman’s head of commodities research Jeff Currie said in a Bloomberg television interview.

“We’re still seeing a lot of oil enter this market,” Mr Currie said in an interview with Tom Keene and Francine Lacqua.