OilPrice.com: Goldman Sachs Warns Of An Imminent Oil Supply Shortage
Crude oil could soon swing into a deficit that will make next year a difficult one, Goldman Sachs said, as spare production capacity dwindles and underinvestment threatens future supply.
Speaking on the sidelines of an event in Saudi Arabia, Goldman’s top commodity analyst Jeffrey Currie said, as quoted by Bloomberg, that the industry is not spending enough to secure future production and that spare capacity globally is declining.
This could tip the oil market into a serious supply problem next year, but the price for a barrel of Brent could top $100 before then.
According to Currie, rising demand from China and sanctions on Russian oil will contribute to the deficit, which he expects to manifest in the second quarter of this year. In response, producers will tap their spare capacity, leaving it lower than it was before. Eventually, this will lead to a serious imbalance between supply and demand.
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Update: Oil To Face "Serious" Supply Problem In 2024 As Production Capacity Runs Out, Goldman Warns (Zero Hedge)
Update #2: Goldman Sachs commodities seer sees oil surging above US$100 (Proactive)
WNU Editor: What does this mean to you and me. Significant higher energy prices, and the resulting inflation from this spike in oil/gas/and diesel prices.
4 comments:
certainly a change in USA leadership in 2024 will help resolve this problem as well as a resolution to the Ukraine/Russia mess. But, if we slide into a deep recession prior to 2024, there will probably be enough. Ron
Fuck!!
U.S. has enough petroleum and natural gas to be energy independent but the Greenie Cult won't be happy until nobody can afford fuel to drive. Next will come electric price hikes. Green niravana
Well, frack.
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