• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Energy Armageddon
  • 16 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 16 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 5 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Goldman Betting on Cryptocurrencies
  • 7 days Сryptocurrency predictions
  • 12 days Putin and Xi Bet on the Global South
Are Oil And Gas Lobbyists Influencing The COP Summits?

Are Oil And Gas Lobbyists Influencing The COP Summits?

Environmentalists fear that the next…

The Diesel Crunch Is Finally Causing Demand Destruction

The Diesel Crunch Is Finally Causing Demand Destruction

Diesel inventories have been at…

Aramco Refining Unit Plans Billion-Dollar IPO

Aramco Refining Unit Plans Billion-Dollar IPO

Saudi Aramco’s refining unit Luberef…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Goldman Sachs: Prepare For $20 Oil

The oil market is heading into a whole different era now that Saudi Arabia and Russia are squaring off in an all-out oil price war following Friday’s failed OPEC+ agreement—and US$20 Brent Crude is now a real possibility, Goldman Sachs said on Monday.

Oil prices plunged by 10 percent on Friday after OPEC and its Russia-led non-OPEC allies failed to agree on how to handle the depressed demand amid the coronavirus outbreak. The Saudis and OPEC insisted on a massive 1.5-million-bpd cut through end-2020, but Russia refused to continue ceding more ground and market share to U.S. shale with the OPEC+ production cut deal, which hadn’t materially moved oil prices higher, especially with the slump in demand due to the virus outbreak.

On Monday, oil prices collapsed by 30 percent early in the day before recouping some losses to trade 23 percent lower at 8:00 a.m. EDT, after the Saudis slashed prices for all their major markets and signaled a rise in production as of April.  

“The prognosis for the oil market is even more dire than in November 2014, when such a price war last started, as it comes to a head with the significant collapse in oil demand due to the coronavirus,” Damien Courvalin, oil strategist at Goldman Sachs, wrote in a note to clients, as carried by Yahoo Finance. Related: Oil Prices In Freefall As Pandemic Fears Grow

The major demand shock from the coronavirus outbreak and the looming ‘pump-at-will’ policy will likely keep oil prices at very low levels, according to Goldman Sachs, which slashed its Brent Crude estimates to $30 a barrel in Q2 and Q3, “with possible dips in prices to operational stress levels and well-head cash costs near $20/bbl.”

“This completely changes the outlook for the oil and gas markets, in our view, and brings back the playbook of the New Oil Order, with low cost producers increasing supply from their spare capacity to force higher cost producers to reduce output,” said Goldman Sachs, as carried by Yahoo Finance.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Anthony Okrongly on March 09 2020 said:
    This would have been a genius call a week or two ago. After oil got down to $29 this morning Goldman gets smart. What's next declaring who will win the Presidential election the day after the vote?

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