Energy

Crude Takes a Beating Today; Goldman Braces for More Losses

Oil price fall graphic
thinkstock
We have already noted today’s pounding on gold mining stocks as the price of the yellow metal heads for $1,400 an ounce. Crude oil is taking a less severe beating, but a beating nonetheless.

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.

Essential Tips for Investing (Sponsored)

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.