Soaring gas prices, colder winter could boost oil prices, says Goldman

Value Exchange International

20/09/2021 10:22

Sept 20 (Reuters) - Goldman Sachs said that with the surge
in global gas prices, a colder winter in Europe and Asia could
in turn boost demand for oil, driving a $5 per barrel upside
risk to its fourth quarter 2021 Brent price forecast of $80 a
barrel. 
    A global surge in wholesale power and gas prices has
prompted concerns of high winter energy bills and shortages,
having already forced some energy supplies out of business in
Britain.  urn:newsml:reuters.com:*:nL1N2QL0BQ  NGA/   urn:newsml:reuters.com:*:nL8N2QJ1IE  urn:newsml:reuters.com:*:nL1N2QH1XA
    A colder winter could lead to a 900,000 barrels per day
(bpd) increase in oil demand, the Wall Street bank said in a
note dated Sept. 19.    
    "The tightness in global gas supplies creates a clear and
potentially meaningful bullish catalyst for the oil market this
winter, larger than the downside risk to global oil demand from
another Delta-like COVID wave," Goldman added.  
    The investment bank said that for oil prices to cross the
$80 a barrel threshold, prices at the Dutch TTF hub and JKM
would have to trade at $23.5 and $25.5/mmBtu respectively. 
 TRNLTTFMc1   JKMc1   NG/GB 
    Prices at the TTF hub and JKM are currently trading at
$24/mmBtu and $25/mmBtu, respectively.
    Brent crude  LCOc1  futures were trading at $74.29 a barrel
at 0844 GMT and U.S. West Texas Intermediate (WTI) crude  CLc1 
futures were at $70.70 barrel.  O/R 
    Bank of America Global Research said recently it could bring
forward its $100 per barrel oil price target to the next six
months from mid-2022 if the winter is colder than usual, while
Barclays expects low stocks in Europe and strong demand for LNG
in Asia, suggesting higher gas prices are here to stay over
winter months.  urn:newsml:reuters.com:*:nL8N2QJ1QL  urn:newsml:reuters.com:*:nL4N2QF23L

 (Reporting by Nakul Iyer in Bengaluru
Editing by Mark Potter)
 ((nakul.iyer@thomsonreuters.com;  Within U.S. +1 646 223 8780,
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