Post by
RichyRich$ on Mar 11, 2020 12:29am
Goldman Sachs Believes Low Oil is Bullish for Natural Gas!
We believe a sharp reduction in U.S. shale oil drilling would, all else equal, be positive for natural gas prices, Goldman Sachs Equity Research analysts led by Brian Singer wrote in a note to clients early Monday. We estimate if our covered producers invest on the basis of $30-45/bbl WTI over the next five quarters, we will see more than 1 Bcf/d net less U.S. gas production.
Comment by
RichyRich$ on Mar 11, 2020 12:32am
For a natural gas market laboring under a seemingly relentless supply glut in recent years, a potential step-change lower in production expectations provided a bullish jolt.