Oil Price, Goldman Sachs, Latest News: February 5, 2023 - Bloomberg
Oil will rise back above $100 a barrel this year and may face a serious supply problem in 2024 as spare production capacity runs out, according to Goldman Sachs Group Inc.
With sanctions likely to cause Russian oil exports to drop and Chinese demand expected to recover as the country ends its Covid Zero policy, prices will rise above $100 from their current level of around $80, according to Goldman.
A lack of spending in the industry on production needed to meet demand will also be a driver of higher prices, and this lack of capacity may become a big issue by 2024, analyst Jeff Currie said on the sidelines of a conference in Riyadh, Saudi Arabia, on Sunday.
“The commodity super cycle is a sequence of price spikes with each high higher and each low higher,” said Currie, who heads commodities research at Goldman. By May, oil markets should flip to a deficit of supply compared to demand, he said. That could use up much of the unused capacity global producers have, which will be positive for prices, he said.
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