• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 12 hours Reality catching up with EV forecasts
  • 8 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 14 days The Federal Reserve and Money...Aspects which are not widely known

Breaking News:

EU Supports $100 Russian Diesel Price Cap

Big Oil Reports Record Profits, But There's A Catch

Big Oil Reports Record Profits, But There's A Catch

Big Oil reported record breaking…

U.S. Gasoline Prices Continue To Climb

U.S. Gasoline Prices Continue To Climb

Gasoline prices continue to climb…

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 Expects Crude Prices To Rise In 2021

Goldman Sachs’ commodity analysts remain guarded about oil’s potential to rise over the near term, but in 2021, prices may start to improve, commodity chief Jeffrey Currie told Bloomberg’s Alix Steel.

Currie is sticking to the $35-a-barrel oil price forecast over the short term, he said, adding that if prices increased quickly, they would interfere with the market rebalancing by bringing more shale production back online.

As for demand and supply, Currie noted a marked improvement in demand, although in some parts of the U.S., it may be adversely affected by the resurgence in Covid-19 cases, notably in Texas and Florida.

ADVERTISEMENT

In supply, OPEC+ has been doing better than expected, it appears, and Libya has yet to restart all of its fields, so the downside risk for oil prices from the supply side mostly comes from U.S. shale. However, it seems that producers are reluctant to restart shut-in production all at once, which should be positive for oil prices.

Separately, Goldman analysts said demand for oil is likely to recover to pre-crisis levels by 2022, spurred by a return to work for millions, a shift towards more private transport, and government support in the form of infrastructure spending.

ADVERTISEMENT

“Oil demand has already started to recover with the initial pace of recovery surprising to the upside in economies like China and India. Demand is still below normalised level with June demand estimated to be 12% below last year levels,” the investment bank said as quoted by Reuters.

Gasoline will recover the fastest, Goldman also said, unlike jet fuel, which may have a long road to recovery ahead as consumers continue to shun air transport because of the virus.

Yet this fuel demand recovery is not a done deal. Any resurgence in Covid-19 cases on a wider scale could arrest the trend and maybe even reverse it.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment
  • Dick on July 02 2020 said:
    Oil will never lose as long as I am alive. The morons that keep predicting that it will never recover until 2022 is nonsense.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News