Goldman Sachs raised its second-quarter 2011 Brent crude oil forecast yesterday to $105 (R721) a barrel from $100.50, saying Opec spare capacity was being eroded as Saudi Arabia cushioned lost Libyan supplies.
|||Goldman Sachs raised its second-quarter 2011 Brent crude oil forecast yesterday to $105 (R721) a barrel from $100.50, saying Opec spare capacity was being eroded as Saudi Arabia cushioned lost Libyan supplies.
Saudi Arabia has increased output to about 9 million barrels a day, almost 1 million barrels above its agreed Opec quota, as violent unrest slashes exports from Libya. However, analysts said production had been significantly increased before fighting broke out.
The uprising in Libya had cut its 1.6 million barrels a day output by half, the International Energy Agency said last month, while a top Libyan oil official has estimated daily output has fallen to 750 000 barrels.
“While the loss of supply might turn out to be short-lived as production can be restored relatively quickly, the real risk is that the remaining spare capacity cannot accommodate an escalation in disruption right now in our view,” it said.
Three months ago Goldman Sachs estimated Opec spare capacity to be between 2.5 million and 3 million barrels a day.
Brent crude leapt to nearly $120 late last month, its highest since 2008 as the market fretted protests could spread to other Opec countries. – Reuters
Source: http://www.iol.co.za/goldman-lifts-brent-crude-forecast-1.1038903
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