Goldman Sachs: The price of oil may reach $ 75 a barrel.
This is so if the damage to Saudi Arabia’s output will last more than a month and a half. However, in their estimation, the price of “normative” oil will rise as the risk premium rises.
Oil prices may reach $ 75 a barrel if Saudi Arabia fails to return to full output soon. This is according to Goldman Sachs analysts in a message sent to their customers.
The Goldman Sachs’ announcement comes after reports that oil production in Saudi Arabia has reduced by 50% following a hefty rebel attack over the weekend at two major oil production facilities in the country, as the Aramco oil company said. Damage is estimated to be 5.7 million barrels of oil, with the global oil supply expected to decline by 5% and to drive up prices.
BRENT LONG (Buy)
ENTER AT: 67.02