Goldman Sachs has maintained its base case for oil prices at $50 per barrel, saying it anticipates a return to stable long-term oil prices. The bank said in an outlook note that confidence in long-term oil prices has increased due to improvements in technology and therefore the costs involved with shale extraction. Price fluctuations are now likely to be within the realm of 10-20 percent, rather than the quadrupling noted when new technology methods were being trialled, the note said. “This higher level of certainty in the resource base for future supply is what helps drive our confidence,” the note said. Goldman’s long-term WTI price of $50 per barrel remains slightly lower than its 5-year estimate of $54 per barrel, however, the bank said that it anticipates a positive outlook going forward – one not seen for almost 15 years. “We believe we are going back to an environment […]