• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 19 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 7 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 hour Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 3 hours Saudi Fund Wants to Take Tesla Private?
  • 3 hours Starvation, horror in Venezuela
  • 12 hours Venezuela set to raise gasoline prices to international levels.
  • 4 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 6 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 1 day Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 17 hours Corporations Are Buying More Renewables Than Ever
Oil Demand Growth Starts To Weaken In Asia

Oil Demand Growth Starts To Weaken In Asia

Oil demand from Asia’s key…

Can China Afford To Slap Tariffs On U.S. Oil?

Can China Afford To Slap Tariffs On U.S. Oil?

China’s latest round of tariffs…

Goldman Sachs Is Now Bigger Than Exxon, Chevron in Nat Gas Trading

Gas Flaring

Goldman Sachs is now buying and selling enough natural gas to make it one of the key players on the market—even reportedly overtaking oil major Exxon Mobil and Chevron and emboldened enough to now call an end to the supply glut.

According to a recent regulatory filing, Goldman Sachs bought and sold 1.2 trillion cubic feet of physical gas in the U.S. in 2015, which equates to 25 percent of the country’s residential consumption and more than double its 2013 volumes.
These figures turn Goldman Sachs and its J Aron commodities division into the seventh largest gas marketer in North America, according to Natural Gas Intelligence.

Related: How Oil Prices Are Impacted By Storage Logistics

Goldman Sachs entered the natural gas selling market in 2010 with its acquisition of Canadian Nexen’s North American natural gas marketing operations.

Analysts commented on the bank’s commitment to commodities. "The fact that J Aron's business is growing in the face of low volatility in physical natural gas markets is noteworthy. Many players have downsized," Tom Russo, an energy consultant and former official at the Federal Energy Regulatory Commission, told the Financial Times.

J Aron dealt 3.42 billion cubic feet per day in 2011, but volumes in North America rose by 71 percent to 5.86 billion cubic feet last year, according to Natural Gas Intelligence.

Related: Why Oil Prices Increased Despite Doha Disaster

With its status as a new natural gas trading giant, Goldman Sachs has also come out with a bold statement that the supply glut is now over. Its comments helped put crude oil prices up 2 percent early Monday.

Sachs attributes the flip to a deficit in part due to Canadian wildfires and pipeline attacks in Nigeria saying, “The physical rebalancing of the oil market has finally started.”

Goldman Sachs Group Inc. has now raised its U.S. crude price forecast to US$50 a barrel for the second half of 2016. Its earlier estimate in March was US$45.

By James Burgess of 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