“Goldman Sachs” believes that oil prices may remain at high levels over the coming years, in light of the recovery of demand and the tightening of supply.
Goldman Sachs head of commodity research, Damien Corvalin, told CNBC that market fundamentals justify high prices, and that what is happening is not a temporary shock as is the case for natural gas, but rather the beginning of a higher repricing of oil.
The Goldman Sachs official explained that what is happening in the coal market, where supply is shrinking faster than demand, is a warning signal for the oil market, and continued: “Oil exploration activity has not recovered much in terms of supply, while demand is growing, so the market is starting to enter into A stage of deep incapacity.”
Corvalin stressed that the market faces the possibility of a deficit that may extend for several years and high pricing risks.
He also expected the global demand for oil to rise to record levels in 2022 and 2023.
The article “Goldman Sachs”: Oil prices may remain at high levels for several years was written in Al Borsa newspaper.