Goldman Sachs is predicting that growing global oil demand will outstrip supply in the next few months, according to a new report.
The New York-based investment firm says demand for oil will likely outstrip supply in the second quarter. This would be the first time since the first quarter of 2014 that demand has outpaced supply.
For the year, the firm expects demand to come in at 170,000 barrels above supply, mostly due to declines in production by members of the Organization of Petroleum Exporting Countries, or OPEC, and drops in U.S. oil production.
Oil prices peaked at $107 a barrel in June 2014 before plummeting to $26 a barrel in February 2016 as oil supplies outpaced demand, leading to a buildup of record amounts of crude stockpiles.