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Energy Investing
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Goldman Sachs says oil prices could be higher for much longer....CNBC this AM w/videoHigher for longer. The new meme. http://www.cnbc.com/2021/10/14/goldman-sees-sustained-high-prices-for-oil-in-the-coming-year.html Oil prices could stay at higher levels in the years to come as demand rebounds while supply remains tight, according to Goldman Sachs’ head of energy research. Damien Courvalin, who is also a senior commodity strategist, said the market fundamentals warrant higher prices and that the bank’s forecast for Brent crude is $85 per barrel for the next several years. “This is not a transient winter shock like it could be for gas. This is actually the beginning of a material repricing higher for oil,” he told CNBC’s “Street Signs Asia” on Thursday. The oil market is in “the longest deficit we’ve seen in decades,” and demand will continue to outstrip supply in winter, said Courvalin. The lack of upstream investment in oil supply while demand grows points to “sustained high prices” at least in the year ahead, he added. Oil drilling activity hasn’t recovered much on the supply side, while demand is growing, he said, describing the market as being in an “entrenched deficit.” “We’re facing potential multi-year deficits and the risk of significantly higher prices,” he said. There needs to be a realization that the transition to cleaner energy will take a long time, and that calls to stop investing in hydrocarbon supply will only create “much higher energy prices in the coming years,” he said. |
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Msg # | Subject | Author | Recs | Date Posted |
358817 | Re: Goldman Sachs says oil prices could be higher for much longer....CNBC this AM w/video | MrBigger | 6 | 10/14/2021 9:11:52 AM |
358937 | Re: Goldman Sachs says oil prices could be higher for much longer....CNBC this AM w/video | Comox52 | 2 | 10/14/2021 3:38:39 PM |