OPEC deal cuts risk of surprise supply gain, excess stock draw - Goldman Sachs

According to Goldman Sachs, the OPEC deal has reduced the risk of both unexpected increases in supply as well as excess draws in stockpiles. 

Key points (Source - Bloomberg)

• Reiterates view that long-dated implied volatility remains too rich.
• Scope for even greater backwardation than we currently project through 2018 although with lower deferred prices.