Goldman sachs outlook on oil and gas

A worker stands on pipes at an offshore oil engineering company in Qingdao, in China's eastern Shandong province. Goldman Sachs seems to
think so. In a note dated Thursday, analyst Michael Wittner said that while the deal appeared to target production cuts of , to 1 million barrels a
day, he expected the actual cut would be much smaller, potentially less than , barrels a day. Apple's stock surges 2. Wittner also noted that even if
the deal results in no actual production cuts, it was still very significant as it marked Saudi Arabia's and OPEC's return to active market
management after deliberately remaining passive for nearly two years. Be advised that Goldman Sachs actually thinks oil likely heads lower before
it heads higher. Gas Chicago Price Tables: The Goldman duo still expects "strong, broad-based gas demand growth" for next year, given more
coal-fired retirements, new petrochemical plants, liquefied natural gas LNG exports ramping up and on increased exports to Mexico, against
slowing associated gas production. Of all the brokerage firms that can make waves with new sector and market research calls, Goldman Sachs
would be considered at the top of the list. Goldman also noted that risks were "skewed to the upside" on production from countries not targeted
by the quota deal, pointing out that output from Libya and Iraq was already , barrels a day above the bank's expectations. What's in the Cards?
Reduced oil imports from OPEC countries, growing Chinese demand for metals and positive macroeconomic data forecasts all suggest that the
"base case logic remains intact," the bank said of the sector. Across our macro and industry research, we examine the search for a new equilibrium
in prices and how the changed landscape is impacting markets, economies, industries and companies worldwide. Adapting to the New Oil Order
The ripple effects of US shale oil are driving fundamental changes in energy projects around the world, according to Goldman Sachs Research.
We now see outright declines in U. Reuters reported OPEC members would limit production to a range of Price fluctuations are now likely to be
within the realm of percent, rather than the quadrupling noted when new technology methods were being trialled , the note said. The price of oil has
dropped to levels not seen since A sharper reduction in U. Before taking this as a screaming buy consider this: This demand weakness is further
exacerbated by our interrelated low oil and strong U. The requested video is unable to play. Related Events Upcoming Events. However, the
"sequential improvement in fundamentals" won't stem "the growth we forecast will apply from a lower level of demand than we had previously
embedded and we now expect that gas prices will continue to compete against coal prices," said Courvalin and Ohana. Unconventional Basin Rig
Count U. This latest call has some serious caveats on timing, but the firm sees a higher floor in oil now and is making key changes in its ratings on
oil and gas stocks. Updated shortly after Thereafter, any upturn in production in may be much shallower than we previously anticipated. Prior to
that, she covered regulatory issues for environmental and occupational safety and health publications. BAML analysts are forecasting "downward
pressure continuing as the global LNG market will likely remain very oversupplied in the second half of and in By the fourth quarter, "the declines in
shale output should also be visible on an annual basis. Reuters and other media outlets reported from Algeria on Thursday that OPEC members
had agreed to cut oil output for the first time since Goldman's updated gas fundamental outlook "is ultimately more oversupplied than we had laid
out earlier this year," with the required coal-to-gas switching rising to 3. It is anticipating returns of five percent over the next three months and four
percent over a 12 month time horizon. The comments refer to the s and early millennium, when commodity returns were generated from carry
rising prices of futures contracts rather than direct price appreciation. Jeff Currie, global head of Commodities Research at Goldman Sachs,
discusses how "The New Oil Order" is reshaping how markets and the oil and gas industry balance supply and demand. Now Goldman Sachs is
raising expectations on the oil sector. Does that sound like a screaming call that oil has bottomed out? The shale revolution in the United States has
dramatically altered the global energy landscape. That is a second-quarter call, versus the first-quarter call. However, "the impact of these factors
is wearing off now as the plunge in the rig count, reduced well completions and declines in capital expenditures are now finally having an impact on
shale output. Statistics for Working Gas in Underground Storage for current week. Goldman Sachs analysts on Monday cut their forecast for 3Q
U. On this episode of Exchanges at Goldman Sachs , Jeff Currie explains why prolonged oversupply and steady production out of the US and
OPEC will continue to hold down oil prices, and the feedback loop driving down commodity prices around the world. Some ratings changes are
for the better, and some were given outright downgrades. Restricted Content You must have JavaScript enabled to enjoy a limited number of
articles over the next days. A warm summer could push prices higher, but the upside would be limited by low Appalachian coal prices following
recent coal plant retirements and an extended period of market share loss to cheaper gas. However, Nicholas Melhuish, head of Global Equities,
Amundi, cautioned that these gains could be short-lived. It's taken longer than expected, said analysts, as zero interest rates, cost declines, hedges
and efficiency improvements have provided protection to the tight oil producers. Ogg March 11, Goldman Sachs sees the new oil order in its
version of the good, the bad and the ugly. Please upgrade to watch video. The bank has also maintained its overweight position for the
commodities sector as a whole.

Goldman cuts crude outlook and oil company forecasts

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March 11, However, "the impact of these factors is wearing off now as the plunge in the rig count, reduced well completions and declines in capital
expenditures are now finally having an impact on shale output. Jeff Currie, global head of Commodities Research at Goldman Sachs, discusses
how "The New Oil Order" is reshaping how markets and the oil and gas industry balance supply and demand. Unconventional Basin Rig Count U.
Goldman's comment on "low oil-dollar correlation" refers to the historical link. The OPEC deal to cut oil production may provide a short-term
support for prices, but chances are it won't change the supply outlook much, Goldman Sachs said. This latest call has some serious caveats on
timing, but the firm sees a higher floor in oil now and is making key changes in its ratings on oil and gas stocks. Goldman Sachs sees the new oil
order in its version of the good, the bad and the ugly. That is a second-quarter call, versus the first-quarter call. Adapting to the New Oil Order
The ripple effects of US shale oil are driving fundamental changes in energy projects around the world, according to Goldman Sachs Research.
 Leslie Shaffer Former Senior Writer. BAML analysts are forecasting "downward pressure continuing as the global LNG market will likely remain
very oversupplied in the second half of and in A sharper reduction in U. A warm summer could push prices higher, but the upside would be limited
by low Appalachian coal prices following recent coal plant retirements and an extended period of market share loss to cheaper gas. The comments
follow a continued hunt for 'safe-haven' assets amid geopolitical uncertainty. Commodities have seen increased demand, with gold in particular
trading up since the start of the year. The Goldman duo still expects "strong, broad-based gas demand growth" for next year, given more coal-fired
retirements, new petrochemical plants, liquefied natural gas LNG exports ramping up and on increased exports to Mexico, against slowing
associated gas production. Goldman also noted that risks were "skewed to the upside" on production from countries not targeted by the quota
deal, pointing out that output from Libya and Iraq was already , barrels a day above the bank's expectations. However, Nicholas Melhuish, head
of Global Equities, Amundi, cautioned that these gains could be short-lived. But he added that the deal was "clearly" supportive for prices as it
would make oil market participants more reluctant to maintain or establish significant short positions, or bets that oil prices would fall. Goldman
Sachs seems to think so. Please disable your ad blocker on CNBC and reload the page to start the video. It is anticipating returns of five percent
over the next three months and four percent over a 12 month time horizon. Wittner also noted that even if the deal results in no actual production
cuts, it was still very significant as it marked Saudi Arabia's and OPEC's return to active market management after deliberately remaining passive
for nearly two years. The video does not exist in the system. Gas Chicago Price Tables: Price fluctuations are now likely to be within the realm of
percent, rather than the quadrupling noted when new technology methods were being trialled , the note said. What's in the Cards? Goldman Sachs
analysts on Monday cut their forecast for 3Q U. All caveats aside, Goldman Sachs made many key analyst changes in the oil and gas sector on
Friday. Societe Generale also didn't think the deal will affect its estimates for oil prices. Tenn Zone 5 L. Michele Della Vigna, co-head of European
Equity Research, explains how producers from Angola to Argentina are adapting to a lower cost curve. Goldman estimated the proposal would
keep production on average at ,, barrels a day below the bank's forecasts through Download the latest Flash player and try again. In a note dated
Thursday, analyst Michael Wittner said that while the deal appeared to target production cuts of , to 1 million barrels a day, he expected the actual
cut would be much smaller, potentially less than , barrels a day. Oil - Lower for Even Longer On this episode of Exchanges at Goldman Sachs ,
Jeff Currie explains why prolonged oversupply and steady production out of the US and OPEC will continue to hold down oil prices, and the
feedback loop driving down commodity prices around the world. Goldman Sachs did warn that the subsequent price recovery will only be gradual
and will go at the same pace as the inventory drawdowns take place. Please upgrade to watch video. The oil consumers are generally getting a
boost. Related Events Upcoming Events. Apple's stock surges 2. Natural Gas Intelligence is a leading daily provider of natural gas prices, natural
gas news, and gas pricing data to the deregulated North American natural gas industry. The bank has also maintained its overweight position for
the commodities sector as a whole. By the fourth quarter, "the declines in shale output should also be visible on an annual basis. Listen to more
episodes of Exchanges at Goldman Sachs. Goldman's updated gas fundamental outlook "is ultimately more oversupplied than we had laid out
earlier this year," with the required coal-to-gas switching rising to 3.

Goldman Sachs | Our Thinking - "The New Oil Order" - Making Sense of an Industry's Transformation
Analysts also noted that the "fast-cycle onshore production is rolling over" for onshore oil. What's in the Cards? The requested video is unable to
play. Goldman Sachs did warn that the subsequent price recovery will only be gradual and will go at the same pace as the inventory drawdowns
take place. The video does not exist in the system. The comments refer to outoook s and early millennium, when commodity returns were
generated goldman sachs outlook on oil and gas carry rising prices of futures contracts rather than direct price appreciation. Prior to
that, she covered regulatory issues for environmental and occupational safety and health publications. Goldman sachs outlook on oil and gas this
episode of Exchanges at Goldman SachsJeff Currie explains why prolonged oversupply and steady production out of the US and OPEC will
continue to hold down oil prices, and the feedback loop driving down commodity glldman around the world. But he added that the deal was
"clearly" supportive for prices as it would make oil market participants more reluctant to maintain or establish significant short positions, or bets that
oil prices would fall. Adapting to the New Oil Order The ripple effects of US shale oil are driving fundamental changes in energy projects around
the world, according to Goldman Sachs Research. Outloko and swchs excerpted from Feb. BAML analysts are forecasting "downward pressure
continuing as the global LNG market will likely goldman sachs outlook on oil and gas very oversupplied in the second half of and in Free Daily
Newsletter Subscribe. The bank has also maintained its overweight position for the commodities sector sacns a whole. Golddman Della Vigna, co-
head schs European Equity Research, explains how producers from Angola to Argentina are adapting to a lower cost curve. Goldman's updated
gas fundamental outlook "is ultimately more oversupplied than we had laid out earlier this year," with the required coal-to-gas switching rising to 3.
Related Events Outlkok Events. Restricted Szchs You must have JavaScript enabled to enjoy a limited number of articles over the next days.
Goldman Sachs analysts on Monday cut their forecast for 3Q U. Ogg March 11, Oil - Lower for Even Longer On this episode of Exchanges at
Goldman SachsJeff Currie explains why prolonged oversupply and steady production out of the US and OPEC will continue gkldman hold down
oil prices, and the feedback loop driving down commodity prices around the world. That is a second-quarter call, versus the ln call. However, the
"sequential improvement in fundamentals" won't stem "the growth we sacgs will apply from a lower level of demand than goldman sachs outlook
on oil and gas had previously embedded and we now expect that gas prices will continue to compete against o prices," said Courvalin and
Ohana. When the dollar has risen in value, oil prices would fallen and vice versa. Societe Generale also didn't think the deal will affect its
estimates for oil prices. After all, Goldman Sachs only caters to institutional investors and to high net worth individuals. Also included at the end of
this report is the formal wording of the Goldman Sachs summary. Please upgrade to watch video. Diamond Offshore Drilling Inc. This latest call
has some serious caveats on timing, but the firm sees a higher floor in oil now and is making key changes in its ratings on oil and gas stocks.
However, Nicholas Melhuish, head of Global Equities, Amundi, cautioned that these gains could be short-lived. The oil consumers are generally
getting a boost. Of all the brokerage firms that can make waves with new sector and market research calls, Goldman Sachs would be considered
at the top goldman sachs outlook on oil and gas the list. Gokdman goldman sachs outlook on oil and gas anticipating returns of five percent
over the next three months and four percent over a 12 month time horizon. However, "the impact of these factors is wearing off now as the plunge
 in the rig count, reduced well completions and declines in capital expenditures are now finally having an impact on shale output. Some ratings
changes are for the better, and some were given outright downgrades. Reuters reported OPEC members would limit production to a sahcs of The
ripple effects of US shale oil are driving fundamental changes in energy projects around the world, according to Goldman Sachs Research. The
updated price forecasts by Goldman account for the firm's cross-commodity implications for the "new oil order," Courvalin and Ohana said. This
demand weakness is further exacerbated by our interrelated low oil and strong U.