• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 11 hours Shale Oil will it self destruct?
  • 6 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 1 hour Iran Captures British Tanker sailing through Straits of Hormuz
  • 56 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Childish Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 10 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 15 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 hours Renewables provided only about 4% of total global energy needs in 2018
  • 19 hours Today in Energy
  • 2 days Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 2 days Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 1 day Why Natural Gas is Natural
  • 1 day LA Solar Power/Storage Contract
  • 6 hours U.S. Administration Moves To End Asylum Protections For Central Americans
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Goldman Sachs Crushes Hopes Of Oil Price Recovery

Goldman Sachs has been extremely pessimistic about the oil market over the last year and a half, and the latest from their head of commodity research, Jeff Currie, is no exception. According to Currie, crude will continue to trade within the US$45-50 band over the next 12 months. Any improvement above US$50 is highly unlikely.

The analyst noted that the primary reason for the gloomy forecast is the simple lack of any upside potential for oil at present. He also suggested that the market may have already balanced itself at the current price levels, comparing the overall environment to that in the early 1990s when a barrel of crude sold for US$20.

Currie told Bloomberg that OPEC’s meeting in Algeria, scheduled for September 27, when the cartel will discuss a potential freeze with Russia, will not have any notable impact on oil prices, whatever the outcome. Shale, he said, has taken the upper hand, because production in the shale patch can be ramped up or reduced much quicker than conventional oil. This development, according to Currie, has taken much of the leverage that previously was at the disposal of conventional oil producers.

Currie’s remarks come on the heels of the latest Oil Market Report of the International Energy Agency, which warned that the growth in demand for crude will be slower than previously forecast this year. The IEA added that the supply will continue to be excessive through the end of the first half of 2017 at least.

Of course, a lot of this supply will continue to come from the current top producers globally, but there may be additional barrels coming from Libya as well, which will certainly aggravate the glut and possibly drag prices down below US$45. Nigeria is also putting a lot of effort into resolving its problems with Niger Delta militants, and although success remains highly uncertain, it is still a possibility.

In light of this, Currie’s forecast can actually be seen as cautiously optimistic.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • chrisx on September 15 2016 said:
    Who is still believing this dummy group? They are wrong 10 out of 10 times.
  • Stanley John on September 15 2016 said:
    Most of times theese guys give out such statements to dissuade the general public from making bets on oil stocks so thqt they can make a killing
  • Barack Obama on September 18 2016 said:
    Goldman Sachs (GS) is significantly down over the year - not surprising when their advisors consistently make wrong bets. You'd be rich if you took the opposite position on their predictions.
  • adec on September 20 2016 said:
    Yeah, somebody got to speak with some hidden agenda...But the same guy, same group would yell $150 oil sooner than we think
  • david on September 21 2016 said:
    When GS called for 200 oil it crashed shortly thereafter.. when they called for teens oil it rebounded within days. This is a good sign for oil to appreciate as they are the Gartmans of the investment world with their public notifications.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play