Economy

Goldman Sachs Raises Oil Price Forecasts On Speedy Market Rebalancing

Goldman Sachs Raises Oil Price Forecasts On Speedy Market Rebalancing

US crude oil production reached 10.038 million barrels per day (b/d) in November 2017, according to EIA's latest Petroleum Supply Monthly.

Similarly, exports to European countries accounted for 22% of total USA exports of crude oil in the first eight months of 2017, averaging 193,000 b/d.

Strong fuel demand, output cuts by OPEC and collapsing Venezuelan production have helped clear a glut six months earlier than anticipated, Goldman analysts Damien Courvalin and Jeff Currie said in a report, raising their six-month price expectation to $82.50 a barrel from $62. "That's the highest level since November 1970 in monthly data collected by the USA agency since 1920".

Almost all the recent surge has come from the lower 48 states excluding federal waters in the Gulf of Mexico. Output from the Gulf of Mexico surged and North Dakota, where most of the Bakken shale lies, pumped the most since August 2015.

Earnings season is upon us and worldwide oil companies are reaping the rewards of efficiencies and cost-cutting and a stronger oil price.

Smaller, older rigs have been idled or replaced by newer, larger and more powerful equipment that can bore through rock faster and further. The number of oil drilling rigs increased by 12, or 1.6 percent, to 759 units. These formations also produce considerable volumes of natural gas associated with the crude oil.

Brent futures, the global benchmark, were up 0.3 percent, at $69.89 a barrel, U.S. West Texas Intermediate (WTI) crude was up 0.5 percent, at $66.13 a barrel, according to Reuters. Russian Federation isn't the only country caught supporting North Korea's fuel needs this month: at least six Chinese ves-sels were delivering oil to North Korean ports as well. It highlights that OPEC on the aggregate reduced imports by a total of ~180 million barrels (meeelion barrels) a year ago. Meantime, the dollar stopped losing value, re-moving one of the main positive drivers for oil/fuel prices over the past two months. The rig count has been rising since June 2016.

More news: Play as Ryu and Sakura in Monster Hunter

Tight oil production can be sensitive to changing oil prices.

Understanding the lags in the system between prices, drilling and production is absolutely critical to making sense of the data.

Among countries with lower output, the largest drop was in Iraq. Though the militias were largely inactive in 2017, the groups have been threatening to ramp up activities as progress slows on negotiations between Nigeria officials and local leaders.

"American crude oil is a game-changer in worldwide trade, global politics and domestic energy security", said Todd Staples, president of the Texas Oil & Gas Association, a trade group.

New completions of wells drilled earlier in 2017 should continue boosting production throughout the first half of 2018.

Goldman Sachs has been noted in the past as having a bullish outlook on the global oil market.


  • Government won't retry New Jersey Sen. Bob Menendez on corruption charges

    Government won't retry New Jersey Sen. Bob Menendez on corruption charges

    Prosecutors lacked smoking-gun evidence and failed to prove a corrupt bargain between the senator and the doctor, he said. The prosecutors argued that the senator began taking bribes from Melgen shortly after he entered the Senate in 2006.
    Jamie Lee Curtis starts shooting for 'Halloween'

    Jamie Lee Curtis starts shooting for 'Halloween'

    Jamie Lee Curtis is returning to play Laurie Strode, and today the iconic actress shared a first look from the set. You can check out the first image from set, which arrives courtesy of Jamie Lee Curtis's Instagram .
    North Korean defector attends State of the Union

    North Korean defector attends State of the Union

    Bush first began a campaign of global economic pressure against Iranian banks in 2006, and the United Nations and the U.S. That's according to a congressional source who requested anonymity because the invitation hadn't been announced.
  • Younkers in Superior's Mariner Mall to close

    Younkers in Superior's Mariner Mall to close

    Closings also will hit stores operating under Bon-Ton's other nameplates, which include Younkers and Elder-Beerman. Sales are planned in the stores beginning at the end of the week and will run for about three months.
    Unsealed warrants say SWAT officers watched Stephen Paddock shoot himself

    Unsealed warrants say SWAT officers watched Stephen Paddock shoot himself

    Haig was still considered a person of interest or whether he was the person the sheriff said remained under investigation. A LinkedIn account that appears to belong to him says he also works at a company called Specialized Military Ammunition .
    Finland's President Sauli Niinisto comfortably re-elected

    Finland's President Sauli Niinisto comfortably re-elected

    While the position is largely ceremonial, the presidential duties include involvement in Finland's foreign policy. In these elections, Niinisto ran as an independent with no association to the NCP that he earlier chaired.
  • Aubameyang Arsenal Debut in Doubt due to Illness - Wenger

    Aubameyang Arsenal Debut in Doubt due to Illness - Wenger

    So, it seems that Henrikh Mkhitaryan will definitely feature for the Gunners but Pierre-Emerick Aubameyang may not return in time. The French-born Gabon global scored 141 goals in 213 games across four-and-a-half seasons with Borussia Dortmund .
    Nicotine In E-Cigarette Vapors May Cause Cancer, Mouse Study Suggests

    Nicotine In E-Cigarette Vapors May Cause Cancer, Mouse Study Suggests

    About one in 20 people in the United Kingdom has adopted a vaping habit as a markedly safer alternative to smoking tobacco. Meanwhile cultured human cells reacted in a similar manner when exposed to nicotine and its derivatives.
    French coastguard searches for Quiksilver boss missing at sea

    French coastguard searches for Quiksilver boss missing at sea

    Mr Agnes, 54, was declared missing by port authorities when he reportedly set sail on Tuesday morning but did not return. Two boats and three helicopters are now involved in a search to find Mr Agnes, according to authorities.
  • Fox gets Thursday night football for 5 years

    Fox gets Thursday night football for 5 years

    Thursday Night Football offers fans less downtime from week to week in consuming football, though it has come with some criticism. Fox will also have all digital rights, meaning Fox Sports will be able to stream Thursday night games for the first time ever.
    Talking killer whale verifies orcas' ability to mimic human sounds

    Talking killer whale verifies orcas' ability to mimic human sounds

    But just because animals can mimic human sounds, that does not mean that they understand our language, she added. Wikie was taught to copy sounds and words from her three-year-old calf Moana and humans.
    Lakers Offered Jordan Clarkson For Avery Bradley

    Lakers Offered Jordan Clarkson For Avery Bradley

    Bradley still remains one of the league's best perimeter defenders and is a career 37 percent shooter from the three-point line. Bradley, 27, has been bothered by a groin injury, which caused him to miss seven straight games earlier in the season.