Goldman Sachs sees fall to $65 a barrel by end of 2019 as US output grows

One might expect the market to be nervous ahead of the impending US sanctions on Iran, but the oil price dipped this week.

Adequate oil supply and an uncertain global economic outlook also dampened sentiment.

In Friday trading, Brent crude was priced above US$72 with WTI (West Texas Intermediate) holding above US$63 a barrel.

As Washington hopes to curtail all Iranian oil exports, the market appears to have this priced in.

At the start of business on Monday next week, President Donald Trump will no doubt be eagerly surveying oil tanker movements from Iran and issuing stern warnings to countries not complying.

Several countries appealed for and got short-term waivers; eight countries in all, including India, China, Turkey, South Korea and Japan.

Goldman Sachs estimates that Iranian crude exports will fall to 1.15 million barrels by the end of the year, down from 2.5 million barrels a day mid-year.

While many Iranian barrels might be off the market, were seeing an increase from other sources.

Russia and Saudi Arabia continue to increase output as does OPEC and the USA.

Data from Russias energy ministry this week said the countrys oil production was at a 30-year high, producing 11.41 million barrels a day in October.

OPEC production figures for last month hit 33.31 million barrels a day, the highest since 2016.

Production in the US is currently estimated to be more than 11 million barrels a day and growing.

Goldman Sachs sees an "unleashing of Permian supply growth onc....

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