Goldman Sachs has revised lower its oil price forecast second quarter and third quarter oil to $30 per barrel and has warned its clients about the possibility of dips in prices to operational stress level and well-head costs near $20 per barrel, according to Yahoo finance.
Key quotes
The prognosis for the oil market is even more dire than in November 2014, when such a price war last started, as it comes to a head with a significant collapse in oil demand due to the coronavirus. This is the equivalent of a 1Q09 demand shock amid a 2Q15 OPEC production surge for a likely 1Q16 price outcome.
This completely changes the outlook for the oil and gas markets, in our view, and brings back the playbook of the New Oil Order, with low-cost producers increasing supply from their spare capacity to force higher-cost producers to reduce output.
At press time, Brent is trading at $32.60, the lowest level since February 2016. WTI oil is also trading at four-year lows near $29. Both benchmarks are currently down over 27% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
Recommended content
Editors’ Picks
AUD/USD faces formidable resistance around 0.6600
AUD/USD resumed its weekly pullback on Thursday, this time accelerating its losses to the 0.6450 region on the back of the stronger US Dollar, while disheartening prints from the Australian labour market also contributed to the sour mood around the Aussie.
EUR/USD: Losses could pick up pace below 1.1470
EUR/USD remained on the back foot and slipped back to fresh multi-week lows near 1.1550 on Thursday, always in response to the improved sentiment surrounding the Greenback, which in turn extended its upside momentum on the back of firmer data from key fundamentals.
Gold trades with modest losses near $3,340
Gold remains in auto-pilot around the $3,340 zone per troy ounce as the NA session draws to a close on Thursday. The yellow metal's negative trend stems from the extra improvement in the dollar, rising US yields, and some relief from trade concerns.
XRP price just 5% from record high as Ripple eyes Dubai's tokenized real estate market
Ripple's (XRP) uptrend paces toward new all-time highs, but is trading at around $3.25 on Thursday, after a remarkable recovery from a support level tested at $2.80 on Tuesday.
China’s first-half growth remains on track, though activity data signals caution
China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.