Goldman Sachs Oil Price Forecast

Goldman Sachs Oil Price Forecast

Jeffrey Currie, global head of commodities research at Goldman Sachs told that Goldman Sachs oil price forecast is very high.

He said the upside risk in crude oil prices and the refined product is enormously high.

Currie also told the current price of crude oil is a buying opportunity as the situation of energy is very bullish across the world.

According to Wall Street Bank, the current pullback in oil prices can be seen as buying opportunity. This summer we are going to witness higher prices from here.

Currie said the base of the upside view of oil is the underinvestment thesis.

And the underinvestment process applies more today as compared to the last two or three weeks. We have just witnessed the evacuation of money from this space. Investment is going out at a moment when there is a desperate need for investment.

Goldman’s Currie also told that remember there is only one way to solve these issues and that is just investment. The more investment we have, the more we will see a drop in prices.

Therefore, Goldman Sachs oil price forecast is high and said we are going to see oil prices this summer into the $140 a barrel range. He forecasted that it will also make product prices higher.

Currie also told as Europe is struggling with reduced Russian gas supply via the Nord Stream pipeline, oil would be used as the substitute for natural gas.

This week we have seen a slump in Brent below $110 a barrel.

At this point, a large number of analysts and economists are saying that Fed is on the way to controlling inflation with aggressive interest rate hikes. But policymakers may not produce an aim of soft landing of the US economy and it will lead to a recession within a year or 1.5 years.