Even as crude prices largely tumbled into a bear market this week, Goldman Sachs says investors can count on the world’s biggest oil cartel to keep a floor under the commodity in 2024.
“We believe that OPEC [Organization of the Petroleum Exporting Countries] will ensure Brent in a $80-$100 range by leveraging its pricing power, with a $80 floor from the OPEC put, and a $100 ceiling from spare capacity,” said a team of Goldman commodities analysts led by Daan Struyven, in a note to clients on Thursday.
On Thursday, December West Texas Intermediate crude
CL.1,
fell $3.76 per barrel, or 4.9% to $72.90 — a 22.18% drop from a 52-week high of $93.68 reached on Sept. 27, according to Dow Jones Market Data. A drop of 20% or more from a recent high meets one definition of a bear market.
January Brent crude
BRNF24,
BRN00,
fell $3.76 per barrel, or 4.63% to $77.42 on Thursday. Technically just shy of a bear market, that marked a 19.81% fall from a 52-week high of $96.55 on Sept. 27.
Both contracts settled at the lowest seen in more than four months on…
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