🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Goldman cuts 2019 oil price outlook on oversupply concerns, U.S. shale growth

Published 01/07/2019, 03:28 PM
© Reuters.  Goldman cuts 2019 oil price outlook on oversupply concerns, U.S. shale growth
GS
-
SHEL
-
LCO
-
SCO
-
UCO
-
BP
-
DTO
-
SZOXF
-
BNO
-
OIL
-
DBO
-
USL
-
USO
-
DWT
-
UWT
-
OLO_old
-
WTID_old
-
WTIU_old
-
OILX
-
OILD_old
-
OILU_old
-
OIL_OLD
-
OILK
-
USOD
-
USOU
-
USAI
-
  • Goldman Sachs (NYSE:GS) cuts its oil price forecasts for 2019, citing rising global production and surprisingly resilient U.S. shale growth, even as crude continues to move away from December’s 18-month lows; February WTI settled +1.2% at $48.52/bbl.
  • Goldman now expects the Brent benchmark to average $62.50/bbl this year, down from a previous forecast of $70, while seeing WTI averaging $55.50/bbl in 2019, down from a prior estimate of $64.50.
  • "We expect that the oil market will balance at a lower marginal cost in 2019 given higher inventory levels to start the year, the persistent beat in 2018 shale production growth amidst little observed cost inflation, weaker than previously expected demand growth expectations (even at our above consensus forecasts) and increased low-cost production capacity," the firm writes.
  • Nevertheless, Goldman slightly raises its stock price targets for BP, which the firm says is "on the cusp of delivering one of the industry’s strongest pipelines of new oil and gas projects," and Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B), which "offers the strongest cash returns to shareholders, on our estimates. (Source: Bloomberg First Word)
  • ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM, WTIU, OILK, OILX, WTID, USOI, USOU, USOD, OILD, OILU, USAI
  • Now read: Energy Recap: Quick Hits - Energy News For The Week Ended Jan. 4, 2019


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.