Monday 16 September 2019

Brent could rally above $75 if Saudi outage extends beyond six weeks: Goldman - Reuters

Brent could rally above $75 if Saudi outage extends beyond six weeks: Goldman - Reuters:

Goldman Sachs said an outage of more than six weeks due to drone attacks on Saudi Arabian oil facilities over the weekend could cause Brent prices to rally above $75 a barrel, although the magnitude of the impact was uncertain at this point.

A disruption over such a duration at current levels would not only push up Brent prices, but also result in the release from Strategic Petroleum Reserves “large enough to balance such a deficit for several months and cap prices at such levels,” the Wall Street bank said in a note dated Sunday.

Oil prices surged on Monday, with global benchmark Brent crude posting its biggest intra-day percentage gain since the Gulf War in 1991, after the attack on Saturday shut over 5% of global supply.

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