Lipow Oil Associates President Andy Lipow on his prospects for Texas after the freeze and related power outages.
Oil prices will rise faster and sharper than previously expected as demand exceeds supply from OPEC +, Iran and the US shale, according to Goldman Sachs Group Inc.
A reopening of the world economy will help return demand to pre-COVID-19 levels, but stocks that remain tight in the summer will cause West Texas Intermediate crude, the US standard, $ 67 , 50 per barrel in the second quarter and $ 72 in the second quarter. next three months, according to Goldman. The company previously predicted that WTI would fetch $ 62 this summer.
COMMANDMENT CLOSURE DAKOTA ACCESS PAIN LINE WILL CAUSE FOOD PRICES TO SPIC
Goldman says international standard Brent crude oil will reach $ 75 this summer, up from its previous forecast of $ 65.
“This year is still driven by fundamental factors, with better-than-expected demand and still a decline in supply which in turn creates a larger deficit than we even expected,” said Damien Courvalin, head of energy research at Goldman Sachs, written.
The firm expects the deficit to widen this spring as production of OPEC and its allies, including Russia, takes longer to return despite a rise in prices.
Higher costs associated with ESG and environmental regulation and investor hedging due to fears that additional COVID-19 stimulus inflation will help raise prices.
READ MORE ABOUT FOX BUSINESS BY CLICK HERE
WTI crude oil crossed $ 62 a barrel on Wednesday and traded just below the level on Monday – close to $ 61 -.
US oil prices fell to a record low of $ 36.73 a barrel last April as barriers tried to slow down the spread of COVID-19 and caused a price war between Saudi Arabia and Russia to swell supplies.