Goldman: OPEC Will Talk Oil Prices Down If Brent Tops $70

11 Jan 2018   OPEC, Prices

OPEC doesn’t want central banks around the world the start responding to inflationary pressure from oil prices above $70 a barrel, nor do they want U.S. shale investments to rise, so the cartel will try to talk oil prices down if Brent exceeds $70 per barrel in the coming days, according to Goldman Sachs. At 09:32 a.m. on Wednesday, Brent Crude was up 0.41 percent at $69.10, just shy of the $70-a-barrel mark, after the American Petroleum Institute (API) reported a staggeringly large draw of 11.19 million barrels of United States crude oil inventories for the week ending January 5, marking six large draws in as many weeks. Robust global oil demand growth is also supporting oil prices, as well as geopolitical concerns out of the Middle East, most notably Iran. OPEC would otherwise enjoy $70 oil, but central banks could intervene to temper inflation from the higher oil […]

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