Goldman Sachs NEWS

Goldman Sachs Research has raised its 2022 & 2023 Brent spot price forecast to $135/bbl & $115/bbl, up from $98 and $105/bbl respectively amid geopolitical tensions in Europe between Russia and Ukraine.

NEW YORK, Feb 3 (Reuters) - Oil prices surged in late-day trading Thursday, sending the U.S. crude benchmark through $90 a barrel for the first time since 2014 due to ongoing supply worries and as frigid weather cascades across the United States. Global benchmark Brent crude settled at $91.11 a barrel,

OPEC+ may decide on Wednesday to announce a larger production increase for March than the usual 400,000 barrels per day, considering the oil price rally to $90 and the potential for renewed discontent from major oil importers at these high price levels, Goldman Sachs said in a Tuesday note. “We view growing potential for a faster ramp-up at this meeting,

Oil demand suffered a severe blow last year when the initially ignored coronavirus in China spread around the world and started prompting lockdowns. Then the wave receded, and oil demand began to rebound, much faster than most expected. Despite the green transition push, demand will continue to recover into next year, too, and those after it. Many forecasters, including BP, in 2020 argued that peak oil was already past us and what we had to look forward to was a more renewable energy mix. And then Covid-19 case numbers in key markets began to decline, and oil demand began to rise. Since then, demand has rebounded so strongly that it has led forecasts to start warning of the possibility of a shortage. Saudi Arabia recently warned that underinvestment in new oil and gas production would lead to higher prices and supply crunches.

Analysts at Goldman Sachs offer their take on the US oil release from the Strategic Petroleum Release (SPR) and any ban of oil exports from the US. “Both the release of oil from reserves and any ban of oil exports from the US are ineffective.” “At present, the US exports around 3m barrels of crude a day. If this export stopped domestic pipelines would be unable to reroute that crude to US refiners. The refiners do not have enough capacity to process it.”

Goldman Sachs-backed ReNew Power’s successful attempt at a public listing in the US has rekindled hopes among clean energy firms of a brighter future ahead after the covid-induced turbulence of last year. Deal activity in the renewable energy space grounded to a near halt as developers struggled to complete projects.

Goldman Sachs says that the world’s largest oil firms are successfully coming out of a life-changing crisis and are now ready to garner the benefits. In a recent report, Goldman highlighted that the oil majors are in a sweet spot. Low operating costs and rising oil prices have increased the cash flow and enhanced earnings. This favorable situation beckons golden days for Big Oil’s Seven Sisters.