• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 10 hours California's Oil Industry Collapses Despite Shale Boom
  • 14 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 2 hours Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 18 hours IMO2020 To scrub or not to scrub
  • 13 hours UK Needs New Wind Turbines
  • 12 hours Will Canada drop Liberals, vote in Conservatives?
  • 5 hours Shale to be profitable in 2019!!!
  • 8 hours Greenpeace Blocks BP HQ
  • 4 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 18 hours The Consequences: Full-Blown Trade War Will Push World Towards Recession
  • 15 hours Australian Voters Reject 'Climate Change' Politicians
  • 15 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 14 hours methanol fuel cells
  • 8 hours Get First Access To The Oilprice App!
  • 15 hours Wonders of Shale- Gas,bringing investments and jobs to the US
California Threatens Gasoline Car Ban

California Threatens Gasoline Car Ban

California might ban gasoline-powered cars…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Goldman Bullish On Oil Markets

GS

Goldman Sachs predicts a banner year for Big Oil in 2018 thanks to a boost in available cash to fund expensive oil exploration projects and pay out dividends to investors, according to a new report by Bloomberg.

Oil majors from Royal Dutch Shell to Exxon Mobil can expect higher oil prices over the course of 2018, flushing mergers and acquisitions budgets with cash for the first time since prices fell in September 2014, Goldman’s head of energy research, Michele Vigna, said.

Three years of oil prices have also made it impossible for smaller producers to compete with the low-cost techniques of tenured majors in the industry. This has reinforced the multinationals’ dominance in the global energy game, Vigna said.

The extension of the OPEC/non-OPEC production cut pact through to the end of 2018, and especially the fact that the cartel and allies included an option to review progress in June, reduces the risk of both sudden supply surges and excessive drawdowns, Goldman Sachs said earlier this month, noting that investor anxiety is higher than it should be.

After months of speculation and conflicting comments and hints from various oil officials, OPEC and the Russia-led non-OPEC producers agreed on November 30th to continue restricting production through the end of 2018, as expected. But the deal’s partners also included the phrasing:

Related: U.S. Shale Sends OPEC Deal Back To Square One

“In view of the uncertainties associated mainly with supply and, to some extent, demand growth it is intended that in June 2018, the opportunity of further adjustment actions will be considered based on prevailing market conditions and the progress achieved towards re-balancing of the oil market at that time.”

But the top bank’s attitude regarding oil price movements has not been consistent. Goldman Sachs warned just two days before OPEC’s crucial meeting that the outcome was uncertain, heightening oil market volatility further. In a research note, the bank said that there was no consensus among the participants in the deal about its extension, and there were signs of an acceleration in the rebalancing of supply and demand, which could dampen motivation to stick to the cuts.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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