Opec output cut not in its own interests: Goldman

Melbourne

A "LARGE" production cut by Opec to prop up crude prices isn't in the group's own interests because it's likely to bolster an expansion of US shale oil, according to Goldman Sachs Group Inc.

While the slide in prices into a bear market increases the chances of a reduction, trimming output by more than 500,000 barrels a day would mean further cuts are needed starting from 2016 as higher prices prompt more US drilling, Goldman said in a note on Monday. Some members of the Organization of Petroleum Exporting Countries including Saudi Arabia have resisted calls to decrease supply while others seek action to support crude.