10-14-2021, 07:48 PM
- Oil prices could stay at higher levels in the years to come as demand rebounds while supply remains tight, said Damien Courvalin of Goldman Sachs.
- “This is not a transient winter shock like it could be for gas. This is actually the beginning of a material repricing higher for oil,” he told CNBC’s “Street Signs Asia” on Thursday.
- “The fundamentals actually very much support the view of higher prices than we’ve seen, pretty much since 2014,” he said.
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Oil prices could stay at higher levels in the years to come as demand rebounds while supply remains tight, according to Goldman Sachs’ head of energy research.
Damien Courvalin, who is also a senior commodity strategist, said the market fundamentals warrant higher prices and that the bank’s forecast for Brent crude is $85 per barrel for the next several years.
“This is not a transient winter shock like it could be for gas. This is actually the beginning of a material repricing higher for oil,” he told CNBC’s “Street Signs Asia” on Thursday.
Goldman Sachs’ base case is for Brent to hit $90 per barrel by the end of the year.
U.S. crude futures were up 1.26% at $81.45 per barrel, while international benchmark Brent crude futures gained 1.24% to trade at $84.21 per barrel on Thursday afternoon in Asia.
The oil market is in “the longest deficit we’ve seen in decades,” and demand will continue to outstrip supply in winter, said Courvalin. The lack of upstream investment in oil supply while demand grows points to “sustained high prices” at least in the year ahead, he added.
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