Energy
Crude Takes a Beating Today; Goldman Braces for More Losses
Published:
Last Updated:
Gold is down about 6.4% now, and West Texas Intermediate (WTI) crude oil is down about 2.0% while Brent crude is down about 2.3%. On top of that, analysts at Goldman Sachs said today that it has closed the company’s long position in Brent crude with a loss of nearly 15.5%.
Goldman’s analysts blame the dramatic drop in Brent pricing to excess capacity of European refineries. The bank worries that as more refining capacity comes back online after routine maintenance, prices will come under even more pressure.
Adding to the drop in price will be a shift of WTI crude from the middle of the United States to the Gulf Coast, putting further downward pressure on Brent pricing. Goldman thinks that could happen as soon as next month.
Goldman’s note is available here.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
