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Goldman: Oil Heading to $40 If OPEC Output Cut Plan Fails

Goldman: Oil Heading to $40 If OPEC Output Cut Plan FailsGoldman: Oil Heading to $40 If OPEC Output Cut Plan Fails

An OPEC deal to cut oil output at a meeting this month is looking increasingly unlikely, with failure warranting prices in the low $40s, according to Goldman Sachs Group Inc.

“The lack of progress on implementing production quotas and the growing discord between OPEC producers suggest a declining probability of reaching a deal on November 30,” Goldman analysts, including Damien Courvalin, wrote in a note dated Oct. 31, Bloomberg reported.

"Obstacles to a supply agreement remain formidable," Greg Sharenow, a Pimco portfolio manager, said in an emailed note on Tuesday.

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