• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 19 mins Could oil demand collapse rapidly? Yup, sure could.
  • 6 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 1 hour U.S. Withdraws From U.N. Human Rights Council
  • 15 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 39 mins Gazprom Exports to EU Hit Record
  • 11 hours "The Gasoline Car Is a Car With a Future"
  • 7 hours Saudi Arabia turns to solar
  • 5 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 19 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 1 hour OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 9 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 9 hours What If Canada Had Wind and Not Oilsands?
  • 19 hours WE Solutions plans to print cars
  • 12 hours EVs Could Help Coal Demand
  • 1 day Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
Alt Text

Oil Markets Unmoved By North Korea Summit

Today’s North Korea summit, and…

Alt Text

Saudi Aramco Looks To Double Refining Capacity

Saudi Aramco looks to almost…

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

Shale Bakken

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