Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Ignores U.S. Weekly Build to Focus on Goldman’s $90 Call

CommoditiesSep 29, 2021 02:59PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Barani Krishnan

Investing.com - Goldman Sachs (NYSE:GS) has called for $90 a barrel, and the oil market seems bent on getting there, even if weekly U.S. inventory isn’t going to be as supportive.

The U.S. Energy Information Administration said crude stockpiles rose by 4.58 million barrels in the week to Sept. 24 versus forecasts for a drop of 2.2 million.

Instead of correcting meaningfully on the data, crude prices which have risen more than 10% since the start of September, fell only slightly. There was, however, an overnight drop of 2% triggered by similar preliminary data from the American Petroleum Institute.

New York-traded West Texas Intermediate, the benchmark for U.S. oil, settled down 46 cents, or 0.6%, at $74.83 per barrel. It hit a session high of $75.79 after the EIA data, versus the overnight low of $73.73. 

London-traded Brent crude, the global benchmark for oil, settled at $78.25 a barrel, down 45 cents, 0.6%. It reached a peak of $78.72 earlier, after an overnight bottom of $76.77.

Earlier in the week, Goldman raised its year-end forecast for Brent to $90 per barrel from $80, as damage from Hurricane Ida continued to shut-in at least 15% of production in the U.S. Gulf of Mexico. 

Fewer headlines on hospitalizations from the Delta variant of Covid has also emboldened oil bulls, although the onset of fall and colder weather could bring in higher caseloads from here. 

“Well, you know what Goldman Sachs called; so buy the dip!” John Kilduff, founding partner of New York energy hedge fund Again Capital, said with a chuckle. “We have a significant upward revision as well in weekly production estimates from the EIA. But none of that matters because it’s $90 oil that’s in everyone’s eyes.”

The EIA revised upwards by half a million barrels U.S. crude production for the week ended Sept. 24, estimating output at 11.1 million barrels per day versus a previous 10.6 million.

In other inventory data, the EIA said gasoline inventories rose by 193,000 barrels, versus the forecast draw of 1.5 million. It was the second straight weekly build for gasoline stockpiles, which rose by a beefy 3.48 million in the previous week.

Stockpiles of distillates, which include diesel and heating oil, gained 384,000 in the latest week against an expected deficit of 1.4 million.

 

Oil Ignores U.S. Weekly Build to Focus on Goldman’s $90 Call
 

Related Articles

Oil Plunges 4.8% as Russia Proposes OPEC+ Output Hike
Oil Plunges 4.8% as Russia Proposes OPEC+ Output Hike By Bloomberg - Dec 02, 2021

(Bloomberg) -- Oil fell sharply as Russia was said to propose OPEC+ sticks with a planned 400,000 barrel a day production hike for January.  Futures in New York tumbled as much as...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (22)
John Brown
John Brown Sep 30, 2021 1:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think they are conservative in their call.
perplexed76 .
perplexed76 . Sep 30, 2021 12:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
where supply tightens gone? now oil gamblers running to goldman sucks "investors"?
David Bennett
David Bennett Sep 30, 2021 12:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Goldman is conservative by $7-$10 in December.
Klaus Weyers
Klaus Weyers Sep 29, 2021 6:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
goldie must be long.. grin
Walter Gonzalez
Walter Gonzalez Sep 29, 2021 4:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't think oil's rocket is just about Goldman's call...
Barani Krishnan
Barani Krishnan Sep 29, 2021 4:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No, I agree it's not. But Goldman has just given another reason for a rally now bordering on insanity. No price that's too low or too high is ever good for oil. One can argue that not too long ago (8 years actually), oil was north of $100 a barrel. But we probably had a better landing then for the US economy compared to now. Of all the forecasts made on oil, Goldman's is probably the most damaging because Currie and Co tend to keep perpetuating their hype with cherrypicked data and more often than not, the influence peddled (Oh Goldman said it!) tends to push the market towards the target, making it a sell-fulfilling prophecy. Yes, we had Ida (which frankly should have never dragged on this long) and other production/pipeline snafus. But Goldman has just thrown a wok of oil at the fire, so to speak.
Emir Safa
Emir_Safa Sep 29, 2021 2:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
are you out of your mind? no one can ignore the facts!
Barani Krishnan
Barani Krishnan Sep 29, 2021 2:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes go ahead. Cherry-pick the data.
Emir Safa
Emir_Safa Sep 29, 2021 2:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Barani Krishnan  , :) how can inventory increase be ignored and a questionable forecast be focused at the same time? the interesting is: I 100% agree with you about Cherry-picking :)
Emir Safa
Emir_Safa Sep 29, 2021 2:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I should have thanked you firstly for the news,
Barani Krishnan
Barani Krishnan Sep 29, 2021 2:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Emir Safa  Thanks much for your analytical mind. Bests.
emerson jenkins
emerson jenkins Sep 29, 2021 1:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"...EIA numbers are up" I meant there are down.
emerson jenkins
emerson jenkins Sep 29, 2021 1:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"the EIA said gasoline inventories rose by 193,000 barrels" read again! That was API. EIA numbers are up.  However, it does not matter. I agree with your general theme, it is going up despite negative news - like Evergrande.  We now have a OPEC+++, a global OPEC, with IOCs, US independents, everyone realizing that they can make more money by not increasing production and manipulating the market.
Barani Krishnan
Barani Krishnan Sep 29, 2021 1:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hello Emerson, here's our page on the EIA gasoline inventories: https://www.investing.com/economic-calendar/gasoline-inventories-485
Alan Rice
Alan Rice Sep 29, 2021 12:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
$190 would be better. Tic-toc.
cb cb
cb cb Sep 29, 2021 12:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Perfect title for what’s been going on in the markets over the last 2 years. Reality is nothing.
Heine Pedersen
Heine Pedersen Sep 29, 2021 12:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Manipulation again and again... Awesome
Amaechi Thankgod
Amaechi Thankgod Sep 29, 2021 12:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thanks
Mojo Snake
Mojo Snake Sep 29, 2021 12:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Keep buying DRIP you will thank me in a month....
Chai Non X You
Chai Non X You Sep 29, 2021 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Todd Holaday
Todd Holaday Sep 29, 2021 11:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How can a weekly estimate be this wrong?
Barani Krishnan
Barani Krishnan Sep 29, 2021 11:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Todd, Ida has messed up everything, that's why. The squeeze was there but now it's gross because of this overdone shut-ins.
john dislias
john dislias Sep 29, 2021 11:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Goldman want to sell to small retailers investors . The oil will decline .
Mohamed El Saiid
Mohamed El Saiid Sep 29, 2021 11:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
+500% since being 15$
Jermaine .A
Jermaine .A Sep 29, 2021 11:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Looks like you're typical "buy the rumour, sell the fact" trade.
Barani Krishnan
Barani Krishnan Sep 29, 2021 11:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't trade. But I expect some sensibility, given a 2nd weekly build in gas and the first addition in 8 weeks.
Barani Krishnan
Barani Krishnan Sep 29, 2021 11:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
For crude that is (first addition in 8 weeks)
William Bailey
William Bailey Sep 29, 2021 11:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Big oil just reducing production to hurt economy and ultimately hurt Biden Admin …. What a joke. Big big backfire
Gero Pal
Gero Pal Sep 29, 2021 11:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump won !!!
Walter Gonzalez
Walter Gonzalez Sep 29, 2021 11:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What are you talking about?? Big oil love's Biden and Biden loves them back. Shutting down Keystone XL was only the biginning of their love affair. Read some news and check some charts.
Mark McMillan
Mark McMillan Sep 29, 2021 11:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bottleneck of cargo ships burning fuel. once offloaded trains, planes and trucks will be burning fuel faster than normal to try and restock depleted inventory all over America. Oil is going up to $90 sooner than later.
Mojo Snake
Mojo Snake Sep 29, 2021 11:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This crash will be epic.... keep buying PIGS.... I love bacon
Pauline Nguyen
Pauline Nguyen Sep 29, 2021 11:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good luck because GS will refund your loss? Lol
Barani Krishnan
Barani Krishnan Sep 29, 2021 11:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You're missing the sarcasm.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email