Geoffrey Curie, Goldman Sachs’ head of products, says low investment in oil and gas will put pressure on oil prices Said This week, CNBC commented on commodity markets.
All markets except wheat are in short supply, which is definitely positive for prices. But what he calls structured low investment has its share of prices for the future. This is especially true for oil, where low investment is not only driven by price but also shifts towards renewable energy investments.
However, Curie noted that the change could trigger short-term demand for oil, and so-called green infrastructure, which could rise in the next few years. Then, when this infrastructure starts operating, it will have a negative impact on oil demand and prices.
The United States began this week with oil gains as it began vaccinating its leading workers, but at the end of trading, prices remained On the slope Concerns about over-distribution outweigh the positive news about vaccines.
As Cartel revised its oil demand forecast for this year and next, it also weighed on supply and demand renewal prices from OPEC. In addition, Baker Hughes’ latest Rick Count report for the United States showed higher Rick additions since January, which has sparked more distribution concerns. After all, Libya continues to increase its production, hitting an average of 1.28 million ppm daily on average this month, up from 1.25 million ppm at the end of November.
Despite the current challenges, Goldman is positive on oil and expects Brent to average $ 65 a barrel next year. The investment bank cited mass vaccinations and a limited increase in production from OPEC + as factors in the positive trend.
Oil stocks are also declining as demand from Asia strengthens, boosting general confidence in oil prices next year.
Written by Irina Slav for Oilprice.com
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