Follow Us:
Sunday, July 03, 2022

Goldman Sachs says global crude stocks likely to keep falling

"Given our unchanged 1.5 million barrels per day growth forecast for 2017, this higher base demand level should fully offset higher US output."

By: Reuters |
February 22, 2017 1:33:57 pm

Goldman Sachs expects global crude oil inventories to keep falling due to production cuts and strong growth in demand, although stocks are likely to rise in the United States. “We do not view the recent US builds as derailing our forecast for a gradual draw in inventories, with in fact the rest of the world already showing signs of tightness,” analysts at the bank said in a note dated Feb 21.

Watch What Else is Making News

“Given our unchanged 1.5 million barrels per day growth forecast for 2017, this higher base demand level should fully offset higher US output.”

The Wall Street bank reiterated its forecast for Brent and US crude prices to rise to $59 and $57.50 per barrel respectively in the second quarter, before dropping to $57 and $55 for the rest of 2017.

Subscriber Only Stories
Skin Allergies In Children – What parents need to know?Premium
What makes KuCoin P2P Trading Platform a Good Choice To Buy Crypto?Premium
Airtel Demonstrates Immersive Video Entertainment On 5G; Recreates Kapil ...Premium
Is It A Good Idea To Keep One Account For All Your Financial Transactions?Premium

Oil prices held near multi-week highs on Wednesday, with the US West Texas Intermediate April crude contract up 18 cents at $54.51 a barrel at 0228 GMT, while Brent crude was up 24 cents at $56.90.

Surging US output has pushed crude and gasoline inventories to record highs, keeping a lid on prices after they climbed following an agreement by the Organization of the Petroleum Exporting Countries (OPEC) and other producers to cut output by about 1.8 million barrels per day (bpd).

“While the production cuts have so far reached a historically high level of compliance at 90 percent, the rebound in US drilling activity has exceeded even our
above consensus expectations,” Goldman said.

However, the increase in US drilling points to factors including further improvement in shale productivity and funding for the industry, rather than expectations of an increase in prices, the bank said.

Hot Offer Putin claims victory in Mariupol, leaving Ukrainian defenders holed up Subscribe Now

📣 Join our Telegram channel ( The Indian Express ) for the latest news and updates

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard

Featured Stories

Latest Comment
Post Comment
Read Comments
Advertisement
X