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Goldman Says Oil at $35 Is ‘Goldilocks’ Ideal for U.S. Explorers

  • Bank says remains positive on shares of U.S. E&P companies
  • Favors producers including EOG Resources, Diamondback Energy
Bloomberg business news

Oil Producers Challenged by World of $35 Oil

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Oil at $35 a barrel is neither too high nor too low but just right to make shares of U.S. explorers worth buying, according to Goldman Sachs Group Inc.

While prices of crude at that level are above cash costs of production, they will deter a rebound in shale output from occurring too early, the bank’s New York-based analysts including Brian Singer said in a report dated April 6. Oil at $30 to $35 a barrel should keep the behavior of U.S. companies unchanged and help lift West Texas Intermediate to $55 to $60 a barrel in 2017, according to Goldman.