President Trump lambastes Twitter, Google and other technology giants for what he claims as their efforts to stifle him.US Economyread more
JP Morgan's Jamie Dimon says student lending "is a disgrace and it's hurting America."Economyread more
Mnuchin tells CNBC he's confident President Trump and China's Xi Jinping can make progress in stalled trade talks.World Economyread more
The first debates will give most of the contenders their biggest platform yet to present themselves to the American people.Politicsread more
Underneath the impressive market rally is a trend that doesn't seem quite right, according to J.P. Morgan.Marketsread more
The stock market is shrinking for several key reasons, but there's a way for investors to maneuver it, says Citi Research strategist Robert Buckland.Trading Nationread more
The Supreme Court refused to overturn a precedent that strengthened the power of government regulators in a closely watched case that could have had broad ramifications for...Politicsread more
Apple made Comcast and Charter agree to sell iPads, Apple TVs and other lower-volume devices as part of the cable companies' deal to offer the iPhone on their mobile service.Technologyread more
President Trump says "I hope we don't" have a war with Iran but it "would not last very long."Politicsread more
According to a new study from Oxford Economics, within the next 11 years there could be 14 million robots put to work in China alone.Technologyread more
Stocks rose on Wednesday as comments from Treasury Secretary Steven Mnuchin lifted expectations of a potential trade deal between China and the U.S.Marketsread more
Oil prices have struggled to rally above $64 a barrel since last quarter's sharp pullback, but Goldman Sachs believes crude futures could break out in the coming months.
The investment bank forecasts international benchmark Brent crude will peak at $67.50 a barrel in the second quarter. Goldman's outlook is based on its view that forecasts for demand growth have grown too gloomy and OPEC has adopted a "shock and awe" approach to pulling back supply.
"Our constructive outlook for oil prices in 1H19 is predicated on both large supply cuts as well as resilient oil demand growth," Goldman analysts said in a research note released on Tuesday evening.
Goldman believes the world's appetite for oil will grow by 1.4 million barrels per day in 2019. That's in line with the International Energy Agency's outlook, but above the consensus on Wall Street and OPEC's view that demand will grow by just 1.24 million bpd.
The bank thinks forecasters are underestimating oil demand from emerging markets in particular.
Last year, developing countries drew down stockpiles of oil to weather a period when oil prices, the U.S. dollar and interest rates were rising — a triple threat that sent the cost of crude soaring in nations from Argentina to India. Goldman sees that trend of destocking reversing. The bank also thinks a recent, rapid decline in emerging market demand for power fuel will ease.
However, Goldman notes that recent economic data have fallen short of its expectations, so it could be another few months before the bank can determine whether its demand outlook hits the mark.
On the supply side, Goldman believes OPEC and its oil market allies have addressed flaws baked into their last deal to cut output, which ran between 2017 and mid-2018.
In Goldman's view, the new deal that kicked in last month delivers a big reduction at the outset — OPEC took nearly 800,000 bpd off the market in January — while making clear that the producers plan to ramp up output in the future, dissuading U.S. shale drillers from turning on the taps.
"Despite our expectation that OPEC's long-term incentive is to grow production strongly, we believed that such a 'shock and awe' cut would be preferable as it would quickly draw inventories while slowing the response of shale producers," Goldman said.
Goldman says supply losses are exceeding expectations this year, as the Trump administration enforces new energy sanctions on Venezuela's state-owned oil firm and U.S. producers offer tepid guidance on future output.
However, the bank is leaving its production expectations in place, noting that OPEC's output fell in January largely due to involuntary declines from Iran, Libya and Venezuela. It also thinks Iran and Libya's output levels could be bullish for oil prices in the near term.