Oil Near $70 as U.S. Shale Surge Looms Over Bullish Banks

Brent crude traded near $70 a barrel as the specter of expanding U.S. supply was weighed against Wall Street banks’ growing faith in a price rally.

The benchmark grade is on course to end the week lower, after being whipsawed by concern about rising American production and optimism over rosy outlooks painted by forecasters including Goldman Sachs Group Inc.

U.S. output surged above 10 million barrels a day for the first time in more than four decades in November, the Energy Information Administration reported Wednesday. The next glimpse into U.S. supply growth will come from the weekly Baker Hughes rig count on Friday. Drillers added 12 rigs in the week to Jan. 26, the most since March.

Goldman Sachs sees Brent crude reaching $75 a barrel over the next three months and climbing to $82.50 within six months. Its previous estimate for both periods was $62 a barrel. The bank’s bullish outlook is driven by its revised demand forecasts, reflecting stronger economic growth in emerging markets. A growing raft of analysts are now starting to consider the prospect of OPEC over-tightening the market.
more detail at:  https://www.bloomberg.com/news/articles/2018-02-02/oil-extends-gains-above-66-after-goldman-lifts-crude-forecast

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Key Currency Exchange Rates for Friday, 11/8/24

American Dollar to Canadian Dollar = 0.719476; American Dollar to Chinese Yuan = 0.139584; American Dollar to Euro = 1.077291; American Dollar to Japanese Yen = 0.006560; American Dollar to Mexican Peso = 0.050080.

Crude oil prices fall as Tropical Storm Nate strengthens

Oil prices were mixed Friday as investors waited to see the potential impact of Tropical Storm Nate on U.S. Gulf Coast oil infrastructure. “As we come into the weekend, the market is focusing on the implications of Tropical Storm Nate and how big any disruptions will be” on crude production and refining capacity, said Richard Mallinson, an analyst at consultancy Energy Aspects. As with Hurricane Harvey in August, the “tendency is for the focus to be more on refinery shutdowns, which is probably more positive for product prices and probably a little bearish for crude prices,” Mr. Mallinson said. Click Read More below for more of the story.
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