- The stock price of Dawson Geophysical Co (NASDAQ: DWSN) is trading at over 25% pre-market. This is why it happened.
The stock price of Dawson Geophysical Co (NASDAQ: DWSN) — a company that acquires and processes 2-D, 3-D, and multi-component seismic data for clients, including oil and gas companies, and independent oil and gas operators as well as providers of multi-client data libraries — is trading at over 25% pre-market. Investors appear to be responding to Goldman Sachs issuing a bullish report about oil prices.
Goldman Sachs is now expecting Brent Crude prices to hit $70 a barrel in the second quarter and $75 a barrel in the third quarter due to market rebalancing and lower expected inventories. The forecasts for both quarters were increased by $10 per barrel.
“Faster re-balancing during what was expected to be the dark days of winter will be followed by a widening deficit this spring as the ramp-up in OPEC+ production lags our above-consensus demand recovery forecast. While we believe that OPEC+, Iran and shale supplies can materially increase through 2H21, all these are likely to remain highly inelastic in the coming months to even higher oil prices. In particular, the recovery of Iranian exports is likely to take months and would further be accommodated within our assumed aggressive ramp-up in OPEC+ output this summer. This increases our conviction in a tight oil market this summer, when we expected OECD inventories to normalize,” said Goldman Sachs in a research note via ForexLive.
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