• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 18 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 19 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Exxon’s Guyana Oil Drilling Plans Anger Venezuela

Exxon’s Guyana Oil Drilling Plans Anger Venezuela

ExxonMobil’s drilling plans offshore Guyana…

U.S. Oil Drilling Sees 6-Rig Gain

U.S. Oil Drilling Sees 6-Rig Gain

The total number of active…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Goldman Remains Bullish On Oil Despite OPEC+ Decision

Goldman Sachs commodity analysts remain bullish on oil prices despite yesterday’s decision by OPEC+ to add another 400,000 bpd to combined production next month.

The bank’s analysts said they see “very clear upside risks”, per a Bloomberg report, adding it expected an average price of $85 for Brent crude in 2023.

The Goldman analysts explained that U.S. shale oil producers would likely continue to stick to their cautious approach to production growth, especially after the latest price drop. At the same time, OPEC has a looming problem with production capacity, which will grow in severity the longer the group sticks to the OPEC+ agreement on output additions.

The investment bank earlier this week said that the plunge that oil took following the news of a new coronavirus variant was excessive, adding that traders “far overshot” the potential impact of the Omicron variant on global oil demand, pricing in a massive 7-million-bpd slump.

“To put this into context, this would represent any of these extreme outcomes: (1) not a single plane flying around the world for three months, or (2) half as intense as the 2Q20 global lockdown, or (3) a world even worst-off than before vaccinations,” Damien Courvalin, Head of Energy Research & Senior Commodity Strategist at Goldman Sachs, wrote in a note.

OPEC+ also believes the price slump that followed the news of Omicron’s emergence was excessive but left the door open at yesterday’s meeting to adjust production if things turned out to be more serious.

This open door to future cuts in output enabled a quick recovery for oil prices that dipped sharply immediately after the OPEC+ meeting, with Brent hitting $66 per barrel at one point. At the time of writing, the international benchmark had recovered to over $71 per barrel, with West Texas Intermediate at $68.42 a barrel.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News