- The stock price of Mammoth Energy Services Inc (NASDAQ: TUSK) increased by 12.64%. This is why it happened.
The stock price of oilfield service company Mammoth Energy Services Inc (NASDAQ: TUSK) increased by 12.64% as it went from a previous close of $5.54 to $6.24.. Investors appear to be responding to Goldman Sachs being bullish on oil with expectations that Brent Crude will hit $75 a barrel in the third quarter of the year.
The increase in Brent Crude would be due to faster market rebalancing, lower inventories, and traders hedging against inflation. And Goldman Sachs is also expecting Brent Crude to hit $70 in Q2. These price targets are $10 hikes from Goldman’s previous forecasts.
“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 report via Forexlive.
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