Vermilion Energy Inc. T.VET

Goldman targets ..

[whoLuLu]

Goldman lifts oil price forecast to $135 for 2022, sees upside to $175

Goldman lifts oil price forecast to $135 for 2022, sees upside to $175

Mar. 08, 2022 8:35 AM ETUSO, XLE, XOM, SHELBy: Nathan Allen, SA News Editor41 Comments

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• In a note from Goldman Tuesday, Analyst Damien Courvalin discussed the impact to oil markets from the war in Ukraine; as a result, the bank increased its base-case 2022 oil price forecast to $135 from $98.
• "Given Russia's key role in global energy supply, the global economy could soon be faced with one of the largest energy supply shocks ever," wrote Damien.
• Goldman's base-case price forecast assumes 1.6mb/d of Russian oil is removed from the seaborne market.
• In the note, Goldman details a scenario whereby 2/3rds of Russian seaborne exports are removed from global markets, under the scenario Goldman estimates oil prices rise to $175 in 2022.
• Investors in oil (NYSEARCA:USO) and oil producers like Shell (NYSE:SHEL), Exxon (NYSE:XOM) and others (NYSEARCA:XLE) are sure to be focused on energy sanctions and self sanctioning practices in coming days and weeks.
• Goldman's upside case and upside oil price target look remarkably similar to JPMorgan's call, which sees $185 Brent if Russian seaborne exports are sanctioned.

[Moemoney42]

I sure hope not Lulu.. that would send the world into a global reccession IMHO.. although I'm loving the final long overdue respect for the sector, there is a limit to what economies and consumers can take.. $120 - $125 WTI is still palatable for economies.. anything over that will create demand destruction.. :-/