BackGoldman sees risk that oil will hold over $80 on Iran, hedging moves
Oil prices across the futures curve have been rising as supplies from Iran are rapidly lost from the market, fuelling concerns about spare production capacity elsewhere
Premium
London: Goldman Sachs Group Inc. said there’s a risk oil will hold above $80 a barrel toward the end of the year, striking a slightly more bullish tone than it did a week ago, as Iran’s exports plunge and producers pull back from hedging.
Oil futures have gained recently, driven by “one-way financial flow from both consumers and investors," analysts including Jeff Currie wrote in a report. “Without producer selling, the two-year forward oil price has rallied to $75.50 a barrel, as consumers and investors hedge oil price risks associated with Iranian sanctions."
Oil prices across the futures curve have been rising as supplies from Iran are rapidly lost from the market, fuelling concerns about spare production capacity elsewhere. Shipments of crude and condensate from the Persian Gulf country fell to a two-and-a-half year low last month, Bloomberg tanker tracking showed. Iran’s rivals may not be able to make up for the shortfall, Goldman said.
Brent crude for December 2020 has gained 29% over the past six months, reaching a 3 1/2 year high of $75.50 a barrel on Monday. Contracts for the nearest month rose 25% over the corresponding period.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
