22 C
Georgetown
Wednesday, April 14, 2021

New Goldman oil price forecast could see Guyana picking up US$75 million per lift by Q3

Must Read

Guyana lifts its 6th million-barrel oil cargo, next shipment could be affected by drop in production

The Guyana government exported another million-barrel oil cargo this week from the Liza Destiny FPSO even as production was...

Small window of opportunity remains for development of gas resources, Shell and Equinor tell Tanzania

(S&P Global Platts) Shell and Norway's Equinor have urged the government of Tanzania to take immediate action to conclude...

Venezuela would have to think many times before blocking use of Stabroek block resources – Advisor

The emergence of the oil industry has unequivocally refashioned Guyana's geopolitical importance. But every rise to stardom in the...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

American multinational investment bank and financial services company Goldman Sachs in a new forecast expects Brent oil prices to reach $70 per barrel in the second quarter (Q2) of this year, up from the $60 it had previously predicted, and to $75 in the third quarter (Q3), up from $65.

“We believe this faster rebalancing during what was expected to be the dark days of winter will be followed by a widening deficit this spring as demand rebounds faster than supply, setting the stage for a tight physical market,” Reuters quoted Goldman as saying, in a note dated Sunday.

According to Reuters, the bank now expects global oil demand to reach 100 million barrels per day (bpd) by late July 2021 versus its previous expectation of August 2021.

Guyana lifted its first cargo for this year from the Liza Phase 1 Development earlier this month and could lift around 4 to 5 more for the remainder of 2021, each totaling approximately 1 million barrels of oil. If Goldman’s forecast of a $75 oil price by Q3 holds, the country will get around $75 million for each cargo exported towards the end of the year.

Meanwhile, oil prices rose on Monday as the slow return of U.S. crude output that was cut by frigid conditions raised concerns about supply just as demand rebounds.

Goldman expects the freeze in Texas to lead to a 1.5 million bpd global deficit this month and cut output by 0.2 million bpd in March due to infrastructure damage and missed completions, the Reuters report stated.

An agreement to hike production by the Organization of the Petroleum Exporting Countries and its allies in the upcoming March meeting will not be bearish for prices as supply is set to lag, Goldman said.

It expects a 0.5 million bpd increase in quotas in April, with Saudi Arabia reversing its unilateral 1 million bpd cut and continues to expect moderate exports from Iran this year.

“The key uncertainty for now is at which price level producers finally ramp-up activity… we are raising our marginal cost assumption by $5 per barrel to $60 per barrel Brent for the remainder of 2021,” Goldman said.

Last week, UBS raised their Brent price forecast to $68 per barrel for the second half of this year, Reuters said.

OilNOW TV

Latest News

Small window of opportunity remains for development of gas resources, Shell and Equinor tell Tanzania

(S&P Global Platts) Shell and Norway's Equinor have urged the government of Tanzania to take immediate action to conclude...

Guyana lifts its 6th million-barrel oil cargo, next shipment could be affected by drop in production

The Guyana government exported another million-barrel oil cargo this week from the Liza Destiny FPSO even as production was reduced from 120,000 barrels of...

Venezuela would have to think many times before blocking use of Stabroek block resources – Advisor

The emergence of the oil industry has unequivocally refashioned Guyana's geopolitical importance. But every rise to stardom in the petroleum world will bring its...

Company with interest in Canje block says Jabillo well is 1-billion-barrel opportunity

The Stena Carron initiated drilling operations at the Jabillo-1 well site at the Canje Block on March 14 as part of a three-well campaign...

Exxon reduces oil production levels in Guyana as additional issues encountered with gas compressor system

In an update on Tuesday, ExxonMobil Guyana said as the final testing phase of the reinstalled flash gas compressor and other components of the...

More Articles Like This