• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 23 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Hong Kong protesters appeal to Trump for support.
  • 4 hours Millennials: A boil on the butt of the work ethic
  • 5 hours A little something for all you Offshore swabbies
  • 18 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 14 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 16 hours Europe: The Cracks Are Beginning To Show
  • 45 mins When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 4 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 57 mins LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 3 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 6 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 4 hours Shale profitability
  • 14 hours Let's shut down dissent like The Conversation in Australia
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

Premium Content

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

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: 




Download The Free Oilprice App Today

Back to homepage



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
Download on the App Store Get it on Google Play