Understanding the Market | Oil stocks fell across the board as international oil prices continued to decline recently. Goldman Sachs predicts that in extreme cases, oil prices may drop below $40
Oil stocks fell across the board. As of the time of writing, PetroChina fell 6.4% to HKD 5.12; COSL fell 4.79% to HKD 5.17; Sinopec Corp. fell 2.87% to HKD 3.72; CNOOC fell 2.35% to HKD 15.76. On the news front, international oil prices fell on Tuesday. By the close of that day, the price of light crude oil futures for May delivery on the New York Mercantile Exchange settled at USD 59.58, down 1.85%, marking a new low since April 12, 2021; the price of Brent crude oil futures for June delivery settled at USD 62.82, down 2.16%. Goldman Sachs analysts pointed out that under the extreme scenario of a global GDP slowdown and the complete lifting of OPEC+ production cuts, we estimate that Brent crude oil will fall below USD 40 per barrel by the end of 2026, although the likelihood is very low. This view does not represent the bank's current baseline scenario forecast, which expects Brent crude oil prices to be around USD 55 per barrel by December next year
According to Zhitong Finance APP, oil stocks fell across the board. As of the time of publication, PetroChina Company Limited (00857) fell by 6.4% to HKD 5.12; COSL (02883) fell by 4.79% to HKD 5.17; Sinopec Corp. (00386) fell by 2.87% to HKD 3.72; CNOOC (00883) fell by 2.35% to HKD 15.76.
In terms of news, on Tuesday, international oil prices fell. By the close of that day, the price of light crude oil futures for May delivery on the New York Mercantile Exchange settled at USD 59.58, a decrease of 1.85%, marking a new low since April 12, 2021; the price of Brent crude oil futures for June delivery settled at USD 62.82, a decrease of 2.16%.
Goldman Sachs analysts pointed out that under the extreme scenario of a global GDP slowdown and the complete lifting of OPEC+ production cuts, we estimate that Brent crude oil will fall below USD 40 per barrel by the end of 2026, although the likelihood is very low. This view does not represent the bank's current baseline scenario forecast, which expects Brent crude oil prices to be around USD 55 per barrel by December next year