Sign in to follow this  
Followers 0

Goldman Sachs report (read Nick Cunningham Jun 03 article) discusses Permian pipeline bottleneck relief. Brent $60 next year. Reality dawns on Oil Mkt.

Recommended Posts



New pipelines and new export capacity along the U.S. Gulf Coast should “lower the global marginal cost of production,” Goldman analysts argued. The addition of new U.S. supply, and its integration into the global market, should narrow the difference between WTI and Brent.

Ultimately, that presents a multi-year threat to the market share and revenues of OPEC+ producers. As a result, Goldman sees Brent falling from $72.50 in the second quarter to $65.50 in the third quarter, and then down to $60 per barrel next year.

The prospect of higher U.S. shale output and weakening demand from the trade wars does not bode well for oil prices. In the short run, however, the OPEC+ production cuts should prevent a much deeper downturn.


OPEC+ Has Only One Choice As Oil Slides

Nick Cunningham June 3


The Brent oil price already close to $60 now. What happens when the Permian bottleneck starts to ease Q3 2019 to Q2 2020 ?

Edited by Falcon

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  
Followers 0