GOLDMAN: Oil Could Be Setting Up For A Major Sell-Off

A new report from Goldman Sachs’s commodities research team points to an imminent oil sell-off—or at the very least, a noticeable pause in the rise of oil prices.

According to that research, oil prices generally decline amid softer U.S. economic data, and (though analysts stop short of saying it) often in a big way. And that’s just what’s happening right now.

Goldman analysts argue that a negative turn in their proprietary economic surprise indicator—US-MAP—will probably precede a drop in oil prices, just as it has in the past. And from the graph of that indicator versus WTI crude oil prices, they appear to have a point:

oil prices versus economic surprise goldman sachs

Photo: Goldman Sachs Global Economics, Commodities and Strategy Research

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at