Oct 19 2012
|more articles from|
Goldman slashes Brent oil price forecast to $ 110
Wall Street giant Goldman Sachs, one of the biggest banks in commodity trading, has called an end to the oil price super-cycle, reversing years of bullish recommendations, citing a rise in unconventional oil supplies in the US and Canada. Goldman has been highest predictor among major oil price forecasters but said "long-dated" or five-year forward Brent crude may be anchored at about $ 90 a barrel, Reuters reported. The bank also cut its 2013 Brent forecast to $ 110 a barrel from $ 130. Brent traded near $ 112 yesterday.
"Over the past three years long-dated Brent crude oil prices have shown signs of stabilizing around $ 90 per barrel. This suggests a return to the pricing regime that characterized the crude oil market in the 1990s," Goldman's analysts Jeffrey Currie and David Greely said in a note. "We expect that going forward long-dated oil prices will be anchored by the potential for substantial growth in crude oil supplies from US shale, Canadian oil sands, and the deepwater. Net, we see a return to a structurally stable, but cyclically tight market," they said.
© Copyright Zawya. All Rights Reserved.
More in Oil & Gas
- Iraq earns USD7.764bn from oil sales in Apr vs USD7.772bn in Mar -oil ministry
- Turkish government to sign agreements for oil and gas with Kurdistan
- QPI and Total sign pact for Congo project
- GCC nations, Mena oil exporters face growth decline
- Egypt plans ration cards for fuel by September-oil minster
- Solar plane completes second leg of cross-country flight in Texas
- College student snares record long Burmese python near Miami
- What's in a name? U.S. starts using Myanmar as well as Burma
- Marijuana waste helps turn pot-eating pigs into tasty pork roast
- Man climbs onto dome of St Peter's to protest Italian politics
- There's More