Stock Groups

Goldman Sees $90 Oil If Coming Winter Is Colder Than Normal By Bloomberg


© Reuters. Goldman Sees $90 Oil If Coming Winter Is Colder Than Normal

(Bloomberg) — Oil may surge to $90 a barrel if the approaching winter in the northern hemisphere proves colder than normal, said Jeff Currie, global head of commodities research at Goldman Sachs Group Inc (NYSE:).

Such a rise would be $10 higher than the bank’s current forecast and would be accompanied by a prolonged period of high prices that already have had disastrous consequences for U.K. power providers.

Currie stated Wednesday that tightening European gas supplies will increase demand for oil, at a moment when world crude production is limited. He cited the global factors that include post-hurricane interruptions in the U.S. Gulf of Mexico. 

Meanwhile, the gas rally shows no signs of abating, “particularly outside the U.S.” as tight supplies run headlong into surging demand, Currie said.

“Supply chains are so severely depleted that the system can not accommodate any type of disruption,” Currie said.

At 4:09 PM in London, benchmark international oil futures increased 1.4% to $75.39. This pushed the year-to date advance to 46%. 

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges but by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.