Latest news with #YuliaZhestkovaGrigsby
Bloomberg
5 days ago
- Business
- Bloomberg
Goldman Says Diesel Margins to Stay High on Refining Tightness
Diesel-refining margins may cool off a touch from very high levels, but are still likely to end up above long-run averages given a crunch in global processing capacity, according to Goldman Sachs Group Inc. The industrial fuel has been on a tear recently, with global stockpiles declining and so-called financial demand surging, analysts including Yulia Zhestkova Grigsby said in a note released on Thursday. Unexpected outages at refineries in Europe, plus a dearth of the types of crude that yield distillates — including from Venezuela, Canada, and OPEC+ — exacerbated the situation, they said.
Mint
02-07-2025
- Business
- Mint
Oil Holds Gains With US Stockpiles and OPEC Decision in Focus
Oil edged higher for a second day as traders turn their focus to key supply and economic indicators over the course of the week. Brent crude traded above $67 a barrel, with West Texas Intermediate near $66. A slew of inputs are expected in the coming days, from official US inventory data later Wednesday to a jobs report Thursday and an OPEC output decision at the weekend. The American Petroleum Institute reported a 1.4 million barrel drop for last week at the Cushing oil storage hub — the pricing point for WTI. The decline would be the biggest since January if confirmed by government data, and would bring stockpiles at the hub to their lowest seasonal level since 2005. Trading activity in crude futures has declined since the truce between Israel and Iran led prices to plunge early last week, with volatility returning to levels seen before the war. Concerns are likely to return to a glut forecast for later this year, with an OPEC meeting this weekend expected to deliver another substantial increase in production quotas. 'Crude oil prices remained roughly unchanged week-on-week as the market focus shifts from the ceasefire in the Middle East to this Sunday's virtual OPEC meeting,' Goldman Sachs analysts including Yulia Zhestkova Grigsby wrote in a note. 'We do not expect a large market reaction if OPEC decides to increase production on Sunday as consensus has already shifted towards this outcome.' To get Bloomberg's Energy Daily newsletter in your inbox, click here.
Mint
02-07-2025
- Business
- Mint
Oil Holds Gains With US Stockpiles and OPEC Decision in Focus
Oil edged higher for a second day as traders turn their focus to key supply and economic indicators over the course of the week. Brent crude traded above $67 a barrel, with West Texas Intermediate near $66. A slew of inputs are expected in the coming days, from official US inventory data later Wednesday to a jobs report Thursday and an OPEC output decision at the weekend. The American Petroleum Institute reported a 1.4 million barrel drop for last week at the Cushing oil storage hub — the pricing point for WTI. The decline would be the biggest since January if confirmed by government data, and would bring stockpiles at the hub to their lowest seasonal level since 2005. Trading activity in crude futures has declined since the truce between Israel and Iran led prices to plunge early last week, with volatility returning to levels seen before the war. Concerns are likely to return to a glut forecast for later this year, with an OPEC meeting this weekend expected to deliver another substantial increase in production quotas. 'Crude oil prices remained roughly unchanged week-on-week as the market focus shifts from the ceasefire in the Middle East to this Sunday's virtual OPEC meeting,' Goldman Sachs analysts including Yulia Zhestkova Grigsby wrote in a note. 'We do not expect a large market reaction if OPEC decides to increase production on Sunday as consensus has already shifted towards this outcome.' To get Bloomberg's Energy Daily newsletter in your inbox, click here. This article was generated from an automated news agency feed without modifications to text.
Yahoo
02-07-2025
- Business
- Yahoo
Oil Extends Gain With US Stockpiles and OPEC+ Decision in Focus
(Bloomberg) -- Oil rose for a second day as traders turn their focus to key supply and economic indicators over the course of the week. Struggling Downtowns Are Looking to Lure New Crowds California Exempts Building Projects From Environmental Law What Gothenburg Got Out of Congestion Pricing New York Port Authority Shut Down Due to Multi-Bus Accident Brent crude traded near $68 a barrel, with West Texas Intermediate above $66. A slew of inputs are expected in the coming days, from official US inventory data later Wednesday to a jobs report Thursday and an OPEC+ output decision at the weekend. The American Petroleum Institute reported a 1.4 million barrel drop for last week at the Cushing oil storage hub — the pricing point for WTI. The decline would be the biggest since January if confirmed by government data, and would bring stockpiles at the hub to their lowest seasonal level since 2005. Trading activity in crude futures has declined since the truce between Israel and Iran led prices to plunge early last week, with volatility returning to levels seen before the war. Concerns are likely to return to a glut forecast for later this year, with an OPEC+ meeting this weekend expected to deliver another substantial increase in production quotas. 'Crude oil prices remained roughly unchanged week-on-week as the market focus shifts from the ceasefire in the Middle East to this Sunday's virtual OPEC+ meeting,' Goldman Sachs analysts including Yulia Zhestkova Grigsby wrote in a note. 'We do not expect a large market reaction if OPEC+ decides to increase production on Sunday as consensus has already shifted towards this outcome.' SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too How to Steal a House America's Top Consumer-Sentiment Economist Is Worried China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-04-2025
- Business
- Yahoo
Oil prices could fall to the $50 range by year-end if there's a recession, Goldman Sachs says
The tariff-sparked market sell-off hasn't spared oil, and analysts at Goldman Sachs see prices heading even lower if the global economy tips into a recession. This week, Goldman Sachs analysts lowered their forecast for Brent to an average of $62 per barrel in 2025 and $58 for WTI under the assumption that Trump's tariffs will be reduced, the US avoids a recession, and OPEC raises supply only modestly in the months following its May increase. But if tariffs remain as high as initially announced and a recession follows, prices could head into the $50's range by year-end. 'Assuming a typical US recession and our OPEC baseline, we estimate that Brent would decline to $58/50 by Dec25/26, respectively,' Yulia Zhestkova Grigsby, vice president of commodities research at Goldman Sachs, wrote in a note to clients on Monday night. 'In a global GDP slowdown scenario and keeping our OPEC baseline unchanged, we estimate that Brent would decline to $54/45 by Dec25/26,' she added. In the rare, but most severe possible scenario, Goldman sees a cases for Brent falling below $40. "Finally, in a more extreme and less likely scenario with both a global GDP slowdown and a full unwind of OPEC+ cuts, which would discipline non-OPEC supply, we estimate that Brent would fall just under $40/bbl in late 2026," Grigsby said. On Tuesday, crude bounced back more than 1% with West Texas Intermediate (CL=F) futures hovering above $61 per barrel. Brent (BZ=F), the international benchmark, also rose above $65 per barrel. The rebound follows a 13% drop over the last three sessions as traders assessed the impact of a global trade war following President Trump's sweeping tariff announcement last week. Concerns about excess supply after the Organization of Petroleum Exporting Countries and its allies agreed to increase output in May also weighed on prices. Most Wall Street analysts agree that should the sweeping tariff plan announced on April 2 take effect and remain in place or escalate, the likelihood of a recession is high. "The tariffs, if they stay in place, would be a big hit to the US and global growth, likely pushing the US and global economy into recession this year," JPMorgan's Natasha Kaneva and her team wrote last Friday. "Still, while it is currently difficult to predict the overall direction of developments, we believe that, for oil prices, the trajectory is unmistakably one-way," she added. The analysts believe supply-demand fundamentals may help the Trump administration in achieving its goal of lower oil prices. 'Our view on 2025 has remained largely unchanged over the past year and a half: we anticipate a large 1.3 mbd surplus and an average Brent of $73, although we expect prices to close the year firmly below $70, with Brent exiting the year at $64,' wrote the analysts. Despite Trump's goal to lower energy prices, Citi analysts foresee a $60 floor on Brent. "Last week's decision by OPEC+ to raise output in May does suggest the group's balancing point might be lower than the roughly $68/b Brent average of the last nine years, perhaps as part of some backroom deal with the US Administration," wrote Citi's global head of energy research, Alastir Syme in a Monday note. "That said, we see incentive for defense at $60/b, both from a perspective of OPEC+ budgets and from the perspective that the US Administration likely wants to protect the economics of the US shale industry," he added. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
