Goldman Sachs Is Suddenly Much More Bullish On Crude

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Oil Price: “The rebalancing of the oil market has likely been achieved, six months sooner than we had expected.”

Goldman Sachs (NYSE:GS) dramatically revised its outlook for oil in 2018, saying that it underestimated how rapidly the market was tightening. As a result, Brent prices could hit $82.50 per barrel by the summer.

There are a few reasons why the investment bank is suddenly much more bullish on crude. First and foremost, oil inventories have declined much faster than everyone expected, pushed along by strong demand, high OPEC compliance, maintenance and steep declines in production from Venezuela. Goldman says that these factors are not going away anytime soon, and will continue to tighten the market. more …

Opinion: We have several posts on $100 oil (herehere), and recent headlines concur:

Financial Times Apr. 3, 2017 – “Israel on Monday formally signaled its ambition to become an exporter of energy to Europe.

The Economist Aug. 17, 2017 – “Long a resource-poor country, Israel now has more natural gas than it knows how to use.”

Jerusalem Post Jan. 24, 2018 – “The possibility of having the Israel Natural Gas Lines Company take part in building a pipeline for exporting gas to Europe is being considered.”

While high gas prices could derail middle class benefits from the Trump tax cut, that is not what this post is about. The road to Gog and Magog, which sounds like a great title for a book, is.

Oil and gas are the life blood of a fragile Russian economy. If Israel challenges Russia’s sale of gas and oil to Europe, Vladimir Putin will have little choice but to form an alliance of nations to stop Israel.

Ezekiel 38:1-2 records that a Russian prince will do just that. What is really fascinating is that the prophecy calls for Russia to be pulled into the conflict with ‘hooks in the jaw’, meaning there will be great reluctance on the Russian leader to do so.

Keep in mind that Ezekiel’s prophecy is 2500 years old, and that Russia’s reluctance has nothing to do with knowledge of the prophecy, but everything to do with Israel’s tremendous nuclear fire power today.

And then there is the possibility that Israel’s energy resources will continue to grow:

“By the God of your father who will help you,
And by the Almighty who will bless you
With blessings of heaven above,
Blessings of the deep that lies beneath,
Blessings of the breasts and of the womb.” Genesis 49:25