Oil Ignores U.S. Weekly Build to Focus on Goldman’s $90 Call
Goldman Sachs (NYSE:GS) has called for $90 a barrel, and the oil market seems bent on getting there, even if weekly U.S. inventory isn’t going to be as supportive.
The U.S. Energy Information Administration said crude stockpiles rose by 4.58 million barrels in the week to Sept. 24 versus forecasts for a drop of 2.2 million.
Instead of correcting meaningfully on the data, crude prices which have risen more than 10% since the start of September, fell only slightly. There was, however, an overnight drop of 2% triggered by similar preliminary data from the American Petroleum Institute.
New York-traded West Texas Intermediate, the benchmark for U.S. oil, settled down 46 cents, or 0.6%, at $74.83 per barrel.
It hit a session high of $75.79 after the EIA data, versus the overnight low of $73.73.
London-traded Brent crude, the global benchmark for oil, settled at $78.25 a barrel, down 45 cents, 0.6%.
It reached a peak of $78.72 earlier, after an overnight bottom of $76.77.
Earlier in the week, Goldman raised its year-end forecast for Brent to $90 per barrel from $80, as damage from Hurricane Ida continued to shut-in at least 15% of production in the U.S. Gulf of Mexico.
Fewer headlines on hospitalizations from the Delta variant of Covid has also emboldened oil bulls, although the onset of fall and colder weather could bring in higher caseloads from here.
Reference: Yahoo.Finance
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