Prices are evidently key for US oilers, not projections, as Chesapeake Energy Corporation(NYSE:CHK) and Marathon Oil Corporation (NYSE:MRO) traded up in Thursday morning’s trade.
The major US onshore oil firms, with substantial interests in shale, both rose around 1.5% thanks to the support of stronger oil prices.
One chart proves low oil can't stop the US shale oil surge https://t.co/CzgmfS7yuB pic.twitter.com/0n9XG1NIFZ
— Business Insider (@businessinsider) 23 June 2017
West Texas Intermediary crude was in positive territory after rallying more than 1% earlier on, and at 10:00 am in New York the price was just above US$45 per barrel.
Coming on the same day that Goldman Sachs downgraded its forecasts for oil prices, it represents a fact over fiction reaction by investors.
Goldman commodity analysts sliced the bank’s crude price forecast to US$47.50 per barrel, down from US$55.
The bank described its somewhat fence-sitting view on the oil market as “cyclically bullish within a structurally bearish framework”.
Analysts highlighted that global inventories were reducing and demand was high, nonetheless, it also noted a ramp-up in US shale output as well as an unanticipated increase in production from Libya and Nigeria.
In the wider market, US stocks started lower on Thursday , with the Dow Jones falling 30 points, the S&P 500 shedding 8.43 to 2,432, while the Nasdaq lost over 57 at 6,176.