Goldman Sachs anticipates impending rise in oil prices
(MENAFN) According to Goldman Sachs, oil is going to rise back over USD100 per barrel this year, but diminishing global production and dropping Russian production as a result of Western penalties could cause supply issues in the next year.
Jeffrey Currie, the chief commodity analyst at the Wall Street bank, claimed on Sunday at a conference in Saudi Arabia that Western penalties should cause a decline in Russian oil supply at the same time that growing demand in China pushes oil prices beyond USD100. The price is currently approximately USD80.
Currie informed Bloomberg “Right now, we’re still balanced to a surplus because China has still yet to fully rebound.” noting that “Are we going to run out of spare production capacity? Potentially by 2024 you start to have a serious problem.”
An further issue causing price increases, according to the expert, would be a lack of investment in the sector, which is required to ensure future oil supply to satisfy expanding demand. Currie anticipated that manufacturers would use up their excess capacity, leaving it at a lower level than previously. This would eventually result in a significant mismatch between supply and demand.
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