Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Oil prices on the slide as "pandemic panic" resurfaces in Europe but Goldman Sachs sees buying opportunity

% of readers think this story is Fact. Add your two cents.

The euphoria of rising oil prices did a U-turn this week with six days of declines and fears of lower oil demand.

The sentiment turned gloomy as the oil price fell nearly 10%. In Friday trading, Brent crude was priced below US$63 with West Texas Intermediate (WTI) down lower than US$60 a barrel.

Pandemic panic appears to be resurfacing in Europe as numbers continue to rise and fears of vaccine safety cause confusion.

France imposed a series of regional lockdowns and Italy and Germany acknowledge they are dealing with the third wave.

Other countries like India see the numbers rising, reporting highest rate of infections so far this year. Further lockdowns will continue to impact global travel and economic demand and consequently global oil demand.

Recent volatility

The recent volatility in the market was always a concern and the decision from OPEC not to release any barrels earlier this month is now being welcomed.

The market is hoping they will maintain this policy in the April meeting. The CEO of CMarkits, Dr. Yousef Alshammari says that “OPEC+ and Saudi cuts should keep the market in check”.

Alshammari says he believes oil prices are undergoing some sort of correction as prices had “recovered much faster than demand on optimism of vaccine roll over”.

Looking at oil demand, he says it’s still about 7% lower than pre-crisis levels, especially in Europe.

Investment bank Goldman Sachs says to look on the bright side and see this price fall as a buying opportunity.

The bank says the price is taking “a big breather” and still sees Brent crude reaching US$80 a barrel in the coming months.

Weak demand in Europe and a strengthening US dollar are partly to blame, but the bank says these factors are temporary and they expect “rapid oil market rebalancing” with an increase in global oil demand later this year.

The International Energy Agency released its 2021 medium term market report this week with some optimistic news for oil producers.

Signs of rebalancing

There are signs of rebalancing in the markets, but demand may never return to “normal”. 

“Global oil demand is set to rise every year through 2026,” with no clear peak-oil time frame in place.

The agency says that “stronger policies and behaviour will be vital to bring about a peak in demand in the near future”.

Looking ahead to prospects for a rise in global oil demand, the IEA also said that “road transport in emerging economies has rebounded from early 2020 lows, driving up oil demand and global emissions”.

With such economic uncertainty around the world, particularly in light of the Covid-19 situation, we can expect to see more volatility in the market.

Oil demand took a hit in 2020, down nearly 9 million barrels a day all year and the IEA fears demand “is not expected to return to that level before 2023″.

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Load more ...




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.