- Europe should really brace for one more spike in oil selling prices, Goldman Sachs’ worldwide commodities main Jeff Currie.
- He explained to CNBC that the EU oil ban, China’s emergence from lockdown, and other elements will cause Brent crude to hit $115 a barrel.
- And though Europe has crafted up purely natural gas inventories for this winter season, there are continue to structural difficulties to offer with, he explained.
Europe just isn’t out of the woods still with its strength disaster, as oil selling prices are set to spike by early upcoming 12 months, according to Goldman Sachs’ world wide commodities main Jeff Currie.
In an job interview with CNBC on Monday, he claimed oil supply shortages could pose difficulties, as the European Union ban on Russian oil edges closer and Western international locations in close proximity to a price tag cap, which could mail prices larger if Russia retaliates.
That will be exacerbated by other things, he extra, this sort of as China’s emergence from its lockdown plan, slowing US shale creation, and an conclusion to oil releases from the US Strategic Petroleum Reserve, which the Biden administration has employed to curb high oil costs due to the fact May.
“You set it all collectively, it starts to get bullish at the conclusion of this calendar year and early up coming calendar year,” Currie stated. The commodities bull warned oil costs could be an problem as soon as December, and backed a preceding Goldman estimate that Brent crude would attain $115 a barrel.
Meanwhile, Europe has been setting up up pure gasoline inventories and ramping up purchases of LNG in advance of winter season.
That will aid curb offer shortages stemming from slashed Russian gas supplies — but extensive-expression difficulties in relating to the vitality disaster still persist, Currie warned.
“You never ever get hit by a practice you see coming. [Europe] made the preparations, they dealt with it. But they haven’t dealt with the dilemma of subsequent summer months and the following wintertime, so there is certainly even now a structural issue out there that they want to deal with,” he said.
“We are not out of the woods however on a medium or extended-time period basis,” he later extra.
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- Europe should really brace for one more spike in oil selling prices, Goldman Sachs’ worldwide commodities main Jeff Currie.
- He explained to CNBC that the EU oil ban, China’s emergence from lockdown, and other elements will cause Brent crude to hit $115 a barrel.
- And though Europe has crafted up purely natural gas inventories for this winter season, there are continue to structural difficulties to offer with, he explained.
Europe just isn’t out of the woods still with its strength disaster, as oil selling prices are set to spike by early upcoming 12 months, according to Goldman Sachs’ world wide commodities main Jeff Currie.
In an job interview with CNBC on Monday, he claimed oil supply shortages could pose difficulties, as the European Union ban on Russian oil edges closer and Western international locations in close proximity to a price tag cap, which could mail prices larger if Russia retaliates.
That will be exacerbated by other things, he extra, this sort of as China’s emergence from its lockdown plan, slowing US shale creation, and an conclusion to oil releases from the US Strategic Petroleum Reserve, which the Biden administration has employed to curb high oil costs due to the fact May.
“You set it all collectively, it starts to get bullish at the conclusion of this calendar year and early up coming calendar year,” Currie stated. The commodities bull warned oil costs could be an problem as soon as December, and backed a preceding Goldman estimate that Brent crude would attain $115 a barrel.
Meanwhile, Europe has been setting up up pure gasoline inventories and ramping up purchases of LNG in advance of winter season.
That will aid curb offer shortages stemming from slashed Russian gas supplies — but extensive-expression difficulties in relating to the vitality disaster still persist, Currie warned.
“You never ever get hit by a practice you see coming. [Europe] made the preparations, they dealt with it. But they haven’t dealt with the dilemma of subsequent summer months and the following wintertime, so there is certainly even now a structural issue out there that they want to deal with,” he said.
“We are not out of the woods however on a medium or extended-time period basis,” he later extra.
