• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 20 mins End of EV Subsidies?
  • 9 mins Maersk's COO statment.
  • 6 hours Citi cuts Apple's price target
  • 7 hours Asian stocks down
  • 2 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 4 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 3 mins GOODBYE FOREIGN OIL DEPENDENCE!!
  • 11 hours China Builds LNG Icebreaker
  • 3 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 13 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 12 hours Price Decline in Chinese Solar Panels
  • 4 hours Regular Gas dropped to $2.21 per gallon today
Alt Text

Saudis Won’t Cut Oil Production On Their Own

Saudi Oil Minister al-Falih has…

Alt Text

Saudi Arabia Struggles As Oil Prices Crash

As oil prices continue to…

Alt Text

OPEC Surprises Markets With Last Minute Deal

Oil markets appeared to have…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Goldman Bullish Despite Steep Oil Price Correction

Goldman Sachs continues to be bullish on oil despite the most recent market turbulence that saw prices plummet after reports that Saudi Arabia and Russia are discussing lifting the pact’s production by as much as 1 million bpd to address supply concerns.

The U.S. investment bank reiterated its forecast for Brent Crude at $82.50 in the third quarter this year, due to expectations that global demand growth will stay high even with Brent at $80, and that infrastructure constraints would delay record U.S. crude oil volumes to access the market.

“The current level of the market deficit, the robustness of the demand backdrop, and the rising levels of disruptions all set the stage for inventories to fall further,” Goldman Sachs analysts wrote in their recent report, as carried by Bloomberg.

At the beginning of this month, Goldman Sachs forecast that increased geopolitical tensions in the Middle East, plunging Venezuelan production, and the U.S. withdrawal from the Iran nuclear deal could push Brent Crude prices to $82.50 a barrel by the summer.

A couple of weeks later, Goldman warned that hedge funds and other money managers are wrong to bet against oil, after they started to reduce their record long positions in the six most important petroleum futures and options contracts.

Now Goldman looks unfazed by the growing talks of OPEC and Russia possibly easing the cuts to ‘stabilize’ the oil market and ‘ease consumer anxiety’. Related: U.S. Shale Production May Be Plateauing

According to the investment bank, even if OPEC and allies increase production by 1 million bpd, this would only offset involuntary production declines. A gradual increase of those 1 million bpd would still result in an oil market deficit in Q3 2018, and plunging Venezuelan production and possible Iran supply disruptions would partially offset that 1-million-bpd increase, Goldman says.

“Historically, prices have declined after the announcement of OPEC production increases, however, when these occurred in a strong demand environment like today, prices were on average 8 percent higher than pre-announcement two months later,” Goldman analysts wrote.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • John Brown on May 28 2018 said:
    Goldman is always Bullish. After all the higher the price of a barrel of oil the bigger their cut. If OPEC/Russia/Saudi Arabia are smart they won't push up the price by idling production beyond $65. Over that and they start hammering demand, even if you don't see it for a few months, and set production in the USA and elsewhere on fire, as well as paving the way for ever faster adoption of renewables. $65 or lower oil moderates those other forces, although it doesn't stop them. Over that and the non-carbon future comes rushing at us much faster than anyone now can envision.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
-->