An oil processing facility at Abqaiq and the nearby Khurais oil field was attacked on Saturday.Marketsread more
Shares of defense companies rose on Monday after the United States military was put on alert by President Donald Trump.Marketsread more
Stocks fell on Monday amid fears that a surge in oil prices following an attack in Saudi Arabia could slow down global economic growth.Marketsread more
The Saudi-led military coalition battling Yemen's Houthi movement said on Monday that the attack on Saudi oil plants was carried out by Iranian weapons and did not originate...Oilread more
An attack on Saudi Aramco's key oil facility raises questions about whether the schedule for the company's initial public stock offering will go ahead as planned.Energyread more
President Donald Trump signaled Iran is not telling the truth about the drone attacks on Saudi Arabia's largest oil facilities.Oilread more
U.S. Secretary of Energy Rick Perry spoke to CNBC's "Squawk on the Street" on Monday following a series of drone attacks on Saudi Arabia's oil facilities caused the largest...Oilread more
Perry says it's too soon to say whether the U.S. will need to use its emergency crude reserves to offset the surge in oil prices.Oilread more
Consumers in the U.S. prefer Apple's more expensive models, while the standard iPhone 11 appears to be more attractive to buyers in China, according to analyst Ming-Chi Kuo.Technologyread more
The Times updated an article detailing a previously unreported accusation against Supreme Court Justice Kavanaugh from when he was a Yale University student, noting that "the...Politicsread more
An extended Saudi oil outage could push Brent crude prices north of $75 per barrel, Goldman Sachs warned clients.Marketsread more
Goldman Sachs has maintained its base case for oil prices at $50 per barrel, saying it anticipates a return to stable long-term oil prices.
The bank said in an outlook note that confidence in long-term oil prices has increased due to improvements in technology and therefore the costs involved with shale extraction. Price fluctuations are now likely to be within the realm of 10-20 percent, rather than the quadrupling noted when new technology methods were being
"This higher level of certainty in the resource base for future supply is what helps drive our confidence," the note said.
Goldman's long-term WTI price of $50 per barrel remains slightly lower than its 5-year estimate of $54 per barrel, however, the bank said that it anticipates a positive outlook going forward – one not seen for almost 15 years.
"We believe we are going back to an environment similar to pre-2003, a period characterized by stable long-term oil prices and low oil-dollar correlation," the research note said.
The comments refer to the 1990s and early millennium, when commodity returns were generated from
"The last time the market had this level of certainty around long-term oil prices was before the rise in long-dated oil prices in 2003, nearly 15 years ago," it said.
Goldman's comment on "low oil-dollar correlation" refers to the historical link. When the dollar has risen in value, oil prices would
The bank has also maintained its overweight position
"The strategic case for commodities remains solid", Goldman said, downplaying recent volatility.
The bank has upheld its near-term target for gold at $1,200/toz and its
Reduced oil imports from OPEC countries, growing Chinese demand for metals and positive macroeconomic data forecasts all suggest that the "base case logic remains intact," the bank said of the sector.
The comments follow a continued hunt for 'safe-haven' assets amid geopolitical uncertainty. Commodities have seen increased demand, with gold in particular trading up since the start of the year.
However, Nicholas Melhuish, head of Global Equities, Amundi, cautioned that these gains could be short-lived.
"Commodity prices look quite rich," he told CNBC Wednesday, "that's not a sector we're exposed to.
"The spot (gold) prices look relatively elevated and I think therefore there is potentially some downside to these stocks."