Goldman Turns Bullish On Oil

 A terrorist group in Nigeriya, known as the Niger Delta Avengers have carried out a number of militant attacks on foreign oil companies with operations in the region because the group wants locals to have greater control of the country’s oil fields.

If the tentative agreement is sustainable, it could lead to higher crude output, with the Nigerian government “optimistically” predicting a return to normal levels by the end of July, analysts including Damien Corvallis wrote in a note dated June 29. The return of supplies poses a risk to the bank’s price outlook as it would bring the global oil market close to balance over the final six months of the year, according to Goldman.

Nigeria’s oil production is currently at its lowest levels since 1988 and has been a major catalyst in the recovery of oil prices. Goldman Sachs had earlier indicated that prices would go over $50 per barrel in the second half of 2016, however, these prices were contingent on supply disruptions in Nigeria. It would be interesting to see the fate of the oil markets is once Nigeria comes back online.

           

GOLD

According to Credit Suisse, gold and silver are now its top picks in the metals space: "gold forecast to peak at $1,500 in Q1/17.

Market pros forecast the gold price to increase through 2016 and believe the $1,500 mark could be tested by late 2016 or early 2017   as the macro implications of the Brexit vote are clarified, and November US election weighs on sentiment. 

The Brexit time-clock could begin in October 2016 and extend to October 2018 when negotiations between Britain and the EU are expected to conclude. 

 In the interim, Scotland and potentially Northern Ireland may seek independence referendums in order to remain in the EU. There may also be further votes tabled in other EU nations which will continue to raise the question of the Eurozone's sustainability.


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