• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 12 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 30 mins Tesla Begins Construction Of World’s Largest Energy Storage Facility
  • 19 hours Trump Hands Putin Major Geopolitical Victory
  • 5 hours America Could Go Fully Electric Right Now
  • 2 hours Will any journalist have the balls to ask Kamala if she supports Wall Street "Carried Interest" Tax Loophole
  • 14 hours Those Nasty White People and Camping Racism
  • 2 hours In 1,267 days, Trump has made 20,055 false or misleading claims
  • 9 hours COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 3 hours .
  • 2 hours Brent above $45. Holding breath for $50??
  • 4 hours Buying votes is cool now.
  • 15 hours The Truth about Chinese and Indian Engineering
  • 1 day Oil Tanker Runs Aground in Mauritius - Oil Spill
  • 2 days China wields coronavirus to nationalize American-owned carmaker
  • 2 days Open letter from Politico about US-russian relations
  • 2 hours The World is Facing a Solar Panel Waste Problem
Aramco May Have To Cut Costs To Pay Out Big Dividend

Aramco May Have To Cut Costs To Pay Out Big Dividend

Saudi Arabia’s oil giant Aramco…

U.S. Oil Companies See Production Decline

U.S. Oil Companies See Production Decline

U.S. companies are seeing production…

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




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