81397
Goldman said rising US shale supply will be needed to keep the market steady in the near term.
Goldman said rising US shale supply will be needed to keep the market steady in the near term.

Goldman Sachs Forecast: Crude Oil to Cross $80

Goldman Sachs Forecast: Crude Oil to Cross $80

Goldman Sachs Group Inc. hiked its short-term crude oil price forecast by as much as 33%, saying the market is now likely balanced. 
The bank now estimates Brent will reach $75 a barrel over the next three months and will climb to $82.50 within six months, analysts such as Damien Courvalin wrote in an emailed report. Their previous estimate for both time periods was $62 a barrel, Bloomberg reported.
“The rebalancing of the oil market has likely been achieved, six months sooner than we had expected,” Goldman’s analysts wrote. “The decline in excess inventories was fast-forwarded in late 2017 by stellar demand growth, high OPEC compliance, heavy maintenance as well as collapsing Venezuela production.”
Goldman joins other Wall Street banks, including Morgan Stanley and JPMorgan Chase & Company, in ratcheting up its outlook, as economic growth and output cuts led by the Organization of Petroleum Exporting Countries have helped boost prices.
Morgan Stanley recently said Brent will reach $75 a barrel this year, while JPMorgan said it could rise to near $78 as oil markets tighten more rapidly than expected.
Brent for April delivery traded up 52 cents at $69.41 a barrel at 11:45 a.m. in London after earlier rising to $69.67. The global benchmark last touched $75 in late 2014.
Goldman’s bullish outlook is driven by its revised demand forecasts, reflecting stronger economic growth in emerging markets. The bank also said rising US shale supply will be needed to keep the market steady in the near term, since any ramp-up in OPEC production will lag the rebalancing.
Record bullish bets in the oil market are “actually not that elevated when viewed in the context of broader portfolio allocation”, according to the Goldman report. It forecast that oil will return 24% to investors over the next six months.
Goldman said its view was cyclical, noting that US shale production, the eventual end of OPEC’s oil cuts and higher non-OPEC production will eventually pull down Brent prices to $60 a barrel by 2020. Its “New Oil Order” outlook—where shale production transforms global supply—is on hiatus, but not finished, the bank said.

Short URL : https://goo.gl/GtFJ7q
  1. https://goo.gl/6egWUZ
  • https://goo.gl/MgFgzg
  • https://goo.gl/jx7DcE
  • https://goo.gl/AjLgVB
  • https://goo.gl/czLkQg

You can also read ...

Germany to Miss 2020 Climate Goals
While the newly-installed German government grapples with...
India to Revive Rupee Payment for Iran  Oil Imports
India is looking to revive a rupee trade mechanism to settle...
US, Russia Plan Energy Talks in Washington
US Energy Secretary Rick Perry will meet Russia’s oil minister...
Saudi Minister Says: Timing of Aramco IPO Not Critical
Saudi Oil Minister Khalid Al-Falih signaled the possibility...
OPEC Meets Russia, Allies to Clarify Production Hike
OPEC meets Russia and other allies on Saturday to clinch a new...
Almost 40% of Middle East’s gas consumption take place in Iran.
Iran is burning off record amounts of natural gas, which is...
1st Pars Oil Cargo Exported
National Iranian Oil Company shipped its first batch of crude...
Mokran Petrochem Complex Development Underway
In line with efforts to establish the largest petrochemical...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus