36129
Goldman: Oil Risk Below $20
Energy

Goldman: Oil Risk Below $20

Oil could drop below $20 a barrel as the search for a level that brings supply and demand back into balance makes prices even more volatile, Goldman Sachs Group Inc. predicted. "The capacity to store crude has been exhausted in some places," said Jeff Currie, Goldman’s head of commodities research, Bloomberg reported.  Currie noted that prices may need to drop low enough to halt crude output that can no longer be stockpiled. “Once you breach storage capacity, prices have to spike below cash costs because you have to shut in production almost immediately,” he said.  Volatility will surge and he “wouldn’t be surprised if this market goes into the tens”. West Texas Intermediate, the US crude benchmark, traded near $30 a barrel on Tuesday, having slumped to a 12-year low near $26 on Jan. 20, as rising OPEC output and resilient US shale production intensifies a global glut.  Currie said prices will swing between $20 and $40 a barrel over the next six to nine months while the rebalancing process plays out.

 

Short URL : http://goo.gl/SXl7Su
  1. http://goo.gl/2d3USC
  • http://goo.gl/gkRvYf
  • http://goo.gl/4G4IB9
  • http://goo.gl/GM274v
  • http://goo.gl/gdDsdz

You can also read ...

The agreement went through after years of on-off negotiations with the French group.
A technology licensing agreement with French company Air...
No licenses have been issued for state and semi-governmental companies to build power plants in the last four years.
The Energy Ministry has privatized over 50% of power plants in...
OPEC to Struggle With Oversupply for Years
When OPEC and Russia first embarked on clearing a global oil...
NISOC Targeting 20% Rise in Recovery Rate
National Iranian South Oil Company aims to increase the...
Iraq Sets Up Oil Shipping, Trading Joint Venture
OPEC member Iraq has formed a joint venture with a shipping...
Brent, WTI Make Gains
Oil prices edged up on Wednesday, lifted by declining US crude...
China Energy Demand to Peak in 2040
China's energy demand will peak by 2040, a decade later than...

Trending

Googleplus