Oil to be stuck below US$50 a barrel says Goldman Sachs
Date
8/24/2016 1:59:17 AM
(MENAFN- ProactiveInvestors - Australia)
Crude oil gained overnight, but Goldman Sachs says both price and the crude market";s fundamental recovery remain fragile.
West Texas Intermediate settled up 1.5% at US$48.10 a barrel, while Brent was trading around 1% higher at US$49.60 a barrel.
The investment bank has extended its prediction that crude will stay priced below US$50 a barrel for another year.
In a note Goldman Sachs repeated its forecast for oil to remain between US$45 to US$50 a barrel through to summer 2017.
Goldman analyst Damien Courvalin said: 'while discussions of an OPEC freeze and a weakening dollar have been catalysts for the sharp reversal in oil prices this month, we believe neither will be sufficient to support prices much further.
'In our view, thawing relationships between parties in conflict in areas of disrupted production would be more relevant to the oil rebalancing than an OPEC freeze which would leave production at record highs and could prove counter productive if it supported prices further and incentivized activity elsewhere.”
Courvalin noted rising flows of crude from Northern Iraq, resumption of export facilities in Libya and a ceasefire in Nigeria as three signals that recent supply disruptions are easing. <
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