Business

Oil can soon hit $ 75, Goldman warns, but the rally doesn't last long




  Men working for the Iraqi drilling rig on Rumaila oil field in Basra, Iraq,

Essam Al-Sudani | Reuters

Men working for the Iraqi drilling rig on the Rumaila oil field in Basra, Iraq

Burnt crude oil can beat $ 75 a barrel in the coming months, but the return of the "New Oil Order" will soon push prices down, Goldman Sachs said. on Monday.

Goldman's previous forecast of a basic oil market supply and demand reading, but the investment bank now says Raw prices have received technical support after increasing to three months, and a number of bullish factors are likely to increase in March and April.

"Although prices could easily trade in a $ 70- $ 75 / bbl trade, "We believe such an environment is likely to flame," said Goldman's global commodity commodity researcher Jeffrey Currie and senior trade strategist Damien Courvalin.

"As a result, we would see short-term strength as a window of opportunity for manufacturers to sell advance sprays to create earnings security before returning the new oil appraisal later this year, "the analysts write in a survey note.

The new order is characterized by increasing US oil production from the country's shale field and increasing the low cost output of OPEC and its allies, including Russia. It will ultimately keep Brent and US crude on their way to Goldman's final goal of $ 60 and $ 55, respectively, analysts say.

But in the short term, the so-called OPEC + alliance takes a "shock and awe" approach to cutting production, Goldman says. Saudi Arabia is leading this rapid recall with plans to pump 500,000 barrels a day during its quota in March. Meanwhile, Russia has signaled that it will deepen cuts over the next two months.



Source link

Back to top button