The American Investment Bank indicated to reports in the Wall Street Journal that the United States is considering interfering in the ongoing price war between Saudi Arabia and Russia and that regulators in Texas may curb oil production, and he said that these moves will reduce US global and domestic supplies.
Oil prices rose over a dollar today, to continue the significant gains made in the previous session, after US President Donald # Trump said he would “intervene” in the price war “at the appropriate time.”
But Goldman Sachs said that while any US measures might support the oil market in the second half of the year, the reduction in supply will remain insufficient to offset a demand loss of 8 million bpd, caused by slowing economies to stop the spread of the Corona virus, which caused the death of ten. Thousands of people around the world.
“In the medium term, the impact of these policies will depend on their political applicability, bearing in mind the upcoming presidential election,” the bank said in a note issued Thursday.
He added that the share of US production may increase by between five and ten dollars a Goldman Sachs estimate for the price of West Texas Intermediate crude, which ranges between 40 to 45 dollars per barrel in 2021.
The bank added that while a return to the policies of the US administration of oil supplies in the 1970s and 1980s “helps to support prices in the third and fourth quarters above our forecast for Brent crude at $ 30 and $ 40 a barrel, it simply replaces the artificial oil support policy for OPEC with another” in reference to an organization Petroleum Exporting Countries (OPEC), where Saudi Arabia is a key member.