18 May 2015
Goldman cuts long-term crude outlook – Reuters
FXStreet (Mumbai) - Reuters reported on Monday that the investment bank Goldman Sachs has cut its long-term crude oil price forecasts, citing improved US shale efficiency and higher production from OPEC will be more than enough to meet the future demand.
The investment ban has reportedly said it expects Brent to fall over time, reaching USD 55/barrel by 2020. "We lower our Brent oil price assumption to USD 60-USD 65 for 2016-2019, falling to USD 55 for 2020," Goldman said. Goldman Sachs said it assumed a USD 5 a barrel spread between Brent and US crude, through 2016-2020.
"We see global oil demand being met by U.S. shale, which is continuing to benefit from efficiency and productivity improvements, and OPEC," the bank added.
However, short-term outlook has been revised higher. The bank raised its projection for the average Brent crude oil this year to USD 58/barrel from USD 52/barrel and lifted its outlook for US light crude futures to USD 52/barrel a barrel from USD 48.
The investment ban has reportedly said it expects Brent to fall over time, reaching USD 55/barrel by 2020. "We lower our Brent oil price assumption to USD 60-USD 65 for 2016-2019, falling to USD 55 for 2020," Goldman said. Goldman Sachs said it assumed a USD 5 a barrel spread between Brent and US crude, through 2016-2020.
"We see global oil demand being met by U.S. shale, which is continuing to benefit from efficiency and productivity improvements, and OPEC," the bank added.
However, short-term outlook has been revised higher. The bank raised its projection for the average Brent crude oil this year to USD 58/barrel from USD 52/barrel and lifted its outlook for US light crude futures to USD 52/barrel a barrel from USD 48.