• 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 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 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
  • 20 hours Energy Armageddon
  • 11 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 11 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 5 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 5 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 5 days The Federal Reserve and Money...Aspects which are not widely known
  • 3 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 6 days Goldman Betting on Cryptocurrencies
  • 10 days Сryptocurrency predictions
  • 14 days Putin and Xi Bet on the Global South
Aramco Refining Unit Plans Billion-Dollar IPO

Aramco Refining Unit Plans Billion-Dollar IPO

Saudi Aramco’s refining unit Luberef…

Goldman Sachs Affirms Bullish View On Oil Prices

Despite expectations that OPEC and Russia will likely decide to boost production this week, Goldman Sachs continues to have a very bullish view on oil prices, with strong demand growth and further supply losses pointing to continued declines in inventories and higher oil prices for the rest of the year.

“Our updated global supply-demand balance continues to point to further declines in inventories and higher oil prices in 2H18,” the investment bank said on Monday, as carried by Reuters.

Goldman kept its forecast that Brent Crude will hit $82.50 a barrel this summer and will end 2018 at $75 per barrel. At 06:01 EDT a.m. on Monday, Brent Crude had risen 0.68 percent at $73.94. Further increases to the Brent benchmark came in the afternoon, reaching $74.79 by 1:12pm EDT.

The bank has been bullish on oil for several months, and at the end of May it affirmed its summer peak forecast of $82.50 a barrel Brent, despite the price correction following the first reports that Saudi Arabia and Russia were looking to reverse some of the cuts. Back then, Goldman believed that the current market deficit, robust demand, and the rising levels of disruptions were setting the stage for inventories to drop further this year.

Three weeks later, when the market is largely expecting OPEC and allies to decide to boost production at this week’s meeting, Goldman continues to hold a bullish view.

Related: Iran Looks To Veto Saudi, Russian Oil Production Proposal

“We see the Brent moves since May 24 as pricing-in a higher level of OPEC and Russia production increase than we and consensus are expecting,” according to the bank’s analysts.

Goldman expects OPEC and its Russia-led allies to increase production by 1 million bpd by the end of this year, and by another 500,000 bpd next year, but it sees strong demand and more supply losses from Venezuela and losses from Iran offsetting the production boost.

“Our updated fundamental oil balance shows...that the oil market remains in deficit with resilient demand growth and rising disruptions requiring higher core OPEC and Russia production to avoid a stock-out by year-end.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

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