Latest news with #BrentCrude
Yahoo
2 hours ago
- Business
- Yahoo
Goldman Sachs sees OPEC+ raising oil output by 0.41 mb/d in August
(Reuters) - Goldman Sachs anticipates the eight country OPEC+ oil group will implement a final 0.41 million barrels per day (mb/d) production increase in August, the bank said in a note dated Sunday. "Relatively tight spot oil fundamentals, beats in hard global activity data, and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6th," Goldman Sachs said in a note. OPEC+, the world's largest group of oil producers, stuck to its guns on Saturday with another big increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers. The decision likely reflects relatively tight spot fundamentals, a resilient global economy, and an ongoing shift toward a long-term equilibrium aimed at normalizing spare capacity, supporting internal cohesion, and disciplining U.S. shale production, Goldman Sachs noted. Oil prices rebounded more than $1 a barrel in early Asian trade on Monday after OPEC+ decided to increase output in July by the same amount as it did in each of the prior two months, in line with market expectation. [O/R] Goldman Sachs expects OPEC+ to maintain flat production levels from September, citing slowing global growth in third quarter and new large-scale non-OPEC projects ramping up. Goldman maintained its cautious oil price forecast, projecting Brent crude to average $60 per barrel and West Texas Intermediate (WTI) $56 per barrel for the remainder of 2025. For 2026, it sees Brent at $56 and WTI at $52 per barrel. The forecast reflects expected supply growth outside of U.S. shale will drive surpluses of 1 mbpd in 2025 and 1.5 mbpd in 2026. The bank mainted its oil price forecast stating a moderate upgrade to demand offsets the increase in OPEC+ supply. Goldman Sachs further cited an upward revision of historical International Energy Agency (IEA) Africa demand estimates, stronger-than-expected European demand data, and a softer electric vehicle (EV) outlook in Western markets as contributing factors.
Reuters
2 hours ago
- Business
- Reuters
Goldman Sachs sees OPEC+ raising oil output by 0.41 mb/d in August
June 2 (Reuters) - Goldman Sachs anticipates the eight country OPEC+ oil group will implement a final 0.41 million barrels per day (mb/d) production increase in August, the bank said in a note dated Sunday. "Relatively tight spot oil fundamentals, beats in hard global activity data, and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6th," Goldman Sachs said in a note. OPEC+, the world's largest group of oil producers, stuck to its guns on Saturday with another big increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers. The decision likely reflects relatively tight spot fundamentals, a resilient global economy, and an ongoing shift toward a long-term equilibrium aimed at normalizing spare capacity, supporting internal cohesion, and disciplining U.S. shale production, Goldman Sachs noted. Oil prices rebounded more than $1 a barrel in early Asian trade on Monday after OPEC+ decided to increase output in July by the same amount as it did in each of the prior two months, in line with market expectation. Goldman Sachs expects OPEC+ to maintain flat production levels from September, citing slowing global growth in third quarter and new large-scale non-OPEC projects ramping up. Goldman maintained its cautious oil price forecast, projecting Brent crude to average $60 per barrel and West Texas Intermediate (WTI) $56 per barrel for the remainder of 2025. For 2026, it sees Brent at $56 and WTI at $52 per barrel. The forecast reflects expected supply growth outside of U.S. shale will drive surpluses of 1 mbpd in 2025 and 1.5 mbpd in 2026. The bank mainted its oil price forecast stating a moderate upgrade to demand offsets the increase in OPEC+ supply. Goldman Sachs further cited an upward revision of historical International Energy Agency (IEA) Africa demand estimates, stronger-than-expected European demand data, and a softer electric vehicle (EV) outlook in Western markets as contributing factors.
Yahoo
2 hours ago
- Business
- Yahoo
Goldman Sachs sees OPEC+ raising oil output by 0.41 mb/d in August
(Reuters) - Goldman Sachs anticipates the eight country OPEC+ oil group will implement a final 0.41 million barrels per day (mb/d) production increase in August, the bank said in a note dated Sunday. "Relatively tight spot oil fundamentals, beats in hard global activity data, and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6th," Goldman Sachs said in a note. OPEC+, the world's largest group of oil producers, stuck to its guns on Saturday with another big increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers. The decision likely reflects relatively tight spot fundamentals, a resilient global economy, and an ongoing shift toward a long-term equilibrium aimed at normalizing spare capacity, supporting internal cohesion, and disciplining U.S. shale production, Goldman Sachs noted. Oil prices rebounded more than $1 a barrel in early Asian trade on Monday after OPEC+ decided to increase output in July by the same amount as it did in each of the prior two months, in line with market expectation. [O/R] Goldman Sachs expects OPEC+ to maintain flat production levels from September, citing slowing global growth in third quarter and new large-scale non-OPEC projects ramping up. Goldman maintained its cautious oil price forecast, projecting Brent crude to average $60 per barrel and West Texas Intermediate (WTI) $56 per barrel for the remainder of 2025. For 2026, it sees Brent at $56 and WTI at $52 per barrel. The forecast reflects expected supply growth outside of U.S. shale will drive surpluses of 1 mbpd in 2025 and 1.5 mbpd in 2026. The bank mainted its oil price forecast stating a moderate upgrade to demand offsets the increase in OPEC+ supply. Goldman Sachs further cited an upward revision of historical International Energy Agency (IEA) Africa demand estimates, stronger-than-expected European demand data, and a softer electric vehicle (EV) outlook in Western markets as contributing factors. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
4 hours ago
- Business
- Bloomberg
Oil Advances as OPEC+ Supply Boost Vies With Geopolitical Risk
By Updated on Save Oil gained as a third straight production increase by OPEC+ vied with heightened geopolitical risk in Ukraine and Iran. Brent crude for August rose as much as 2.1% to $64.09 a barrel, after losing 2.2% last week, while West Texas Intermediate was below $62. The Organization of the Petroleum Exporting Countries and its allies agreed on Saturday to add 411,000 barrels a day of supply in July, according to a statement.
Malay Mail
20 hours ago
- Business
- Malay Mail
Oil slides below US$65 bringing inflation relief — and trouble for producers
LONDON, June 1 — US President Donald Trump's tariffs, his call to 'drill baby drill' and especially a decision by Opec+ to hike crude output quotas have oil prices trading at lows not seen since the Covid pandemic. That is good news for consumers but not so much for producers, analysts say. A barrel of Brent North Sea crude, the international benchmark, stands below US$65 (RM276), a far cry from the more than the US$120 reached in 2022 following the invasion of Ukraine by major oil producer Russia. Lower inflation The fall in oil prices has contributed to a global slowdown for inflation, while also boosting growth in countries reliant on importing crude, such as much of Europe. The US consumer price index, for example, was down 11.8 per cent year-on-year in April. Cheaper crude 'increases the level of disposable income' consumers have to be spending on 'discretionary items' such as leisure and tourism, said Pushpin Singh, an economist at British research group Cebr. The price of Brent has fallen by more than US$10 compared with a year ago, reducing the cost of various fuel types derived directly from oil. This is helping to push down transportation and manufacturing costs that may, in the medium term, help further cut prices of consumer goods, Singh told AFP. But he noted that while the drop in crude prices is partly a consequence of Trump's trade policies, the net effect on inflation remains difficult to predict amid threatened surges to other input costs, such as metals. At the same time, 'cheaper oil can make renewable energy sources less competitive, potentially slowing investment in green technologies', Singh added. Oil producers As prices retreat however the undisputed losers are oil-producing countries, 'especially high-cost producers who at current and lower prices are forced to scale back production in the coming months', said Ole Hansen, head of commodity strategy at Saxo Bank. Oil trading close to or below US$60 'will obviously not be great for shale producers' either, said Rystad Energy analyst Jorge Leon. 'Having lower oil prices is going to be the detriment to their development,' he told AFP. Some companies extracting oil and natural gas from shale rock have already announced reduced investment in the Permian Basin, located between Texas and New Mexico. For the Opec+ oil alliance, led by Saudi Arabia and Russia, tolerance for low prices varies greatly. Saudi Arabia, the United Arab Emirates and Kuwait have monetary reserves allowing them to easily borrow to finance diversified economic projects, Leon said. Hansen forecast that 'the long-term winners are likely to be major Opec+ producers, especially in the Middle East, as they reclaim market shares that were lost since 2022 when they embarked on voluntary production cuts'. The 22-nation group began a series of cuts in 2022 to prop up crude prices, but Saudi Arabia, Russia and six other members surprised markets recently by sharply raising output. On Saturday, the countries announced a huge increase in crude production for July with an additional 411,000 barrels a day. Analysts say the hikes have likely been aimed at punishing Opec members that have failed to meet their quotas, but it also follows pressure from Trump to lower prices. That is directly impacting the likes of Iran and Venezuela, whose economies depend heavily on oil revenues. A lower-price environment also hurts Nigeria, which like other Opec+ members possesses a more limited ability to borrow funds, according to experts. Bit non-Opec member Guyana, whose GDP growth has surged in recent years thanks to the discovery of oil, risks seeing its economy slow. — AFP
