• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Oil prices going Up? NO!
  • 2 days Could Venezuela become a net oil importer?
  • 5 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 5 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 days Gazprom Exports to EU Hit Record
  • 10 hours Oil prices going down
  • 13 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 days Oil Buyers Club
  • 2 days Why is permian oil "locked in" when refineries abound?
  • 12 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 4 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 10 hours Saudi Arabia turns to solar
  • 2 days EVs Could Help Coal Demand
  • 1 hour Are Electric Vehicles Really Better For The Environment?
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 12 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
Alt Text

JP Morgan: Oil Prices Won't Go Higher Than $70

Investment bank JP Morgan expects…

Alt Text

Why Is Canadian Oil So Cheap?

Reduced pipeline capacity and bottlenecks…

Alt Text

OPEC Favors 9-Month Extension Of Production Cut Agreement

According to Reuters sources, OPEC…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Trending Discussions

Goldman Sachs Sees ‘’Long-term’’ Oil Prices Below $60

GS office

Oil prices will settle in the $55-$60 range in the long term, according to Jeff Currie, the lead commodities researcher at Goldman Sachs, who spoke to Bloomberg this week regarding new developments in commodities markets.

In the interview, Currie described a survey he conducted with oil industry leaders in Texas. He asked members of the Houston energy sector where they expected prices to go over the long term and they answered with consensus: somewhere between $55 to $60.

Just a few years ago, the range would be a $50 band, he said, adding that the new certainty in supplies has caused the near unanimous agreement.

Compliance by members of the Organization of Petroleum Exporting Countries (OPEC) to their November deal to cut production has been stronger than anticipated, Currie noted. The latest figures say the bloc has cut 94 percent of what they promised.

But American producers – who are not bound to any international production limits – are counteracting many of the corrective measures on the supply side. Shale oil production, which takes little time to bring online once prices become favorable, is slated to enter a boom, with output exceeding nine million barrels by the end of 2017.

“The U.S. supply response seems to be gaining momentum much faster than previously thought,” Currie said. “It’s because of two factors. One is productivity gains, but also access to capital.”

Still, the Wall Street researcher characterized underlying supply-demand fundamentals as “supportive” as opposed to the market dynamic before the November deal.

“In 2012 and 2013, it was a period when the oil [barrel] price started the year at something like $110.60 and finished the year at $110.50, but you still generated an 11 percent annualized return over that period,” he said. “We think we are headed into a very similar environment.”

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com: 




Back to homepage

Trending Discussions


Leave a comment
  • JHM on March 07 2017 said:
    Hmm, Dec 2022 Brent contracts have fallen from about $62.5/b in Oct to about $57.5/b now. Is GS trying to build a floor under this declining trend?
  • DAM on March 08 2017 said:
    So someone at Goldman Sachs does a survey and it becomes Goldman Sachs' position on the future of oil prices. This is really shoddy work.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News