{"id":33707,"date":"2018-04-25T05:55:24","date_gmt":"2018-04-25T10:55:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33707"},"modified":"2018-04-25T05:55:24","modified_gmt":"2018-04-25T10:55:24","slug":"goldman-oil-demand-will-continue-to-soar","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33707","title":{"rendered":"Goldman: Oil Demand Will Continue To Soar"},"content":{"rendered":"

Goldman: Oil Demand Will Continue To Soar<\/a><\/h3>\n\"GS\"<\/picture>\n
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Oil demand is growing, and production is falling. This is the message we have been receiving for a few weeks now with increasingly frequency, especially after OPEC\u2019s leader Saudi Arabia admitted it would like oil prices even higher than US$70. Like a genie from a lamp, the market immediately obliged with traders rushing in to buy more oil, pushing Brent closer to US$75.<\/p>\n

Everyone who\u2019s anyone seems to be upbeat about demand. The IEA forecasts daily demand growth at 1.5 million bpd<\/a> this year. Reuters shipping data suggests<\/a> April imports into Asia will hit an all-time high. Investment banks are bullish. What could go wrong?<\/p>\n

If you listen to Goldman\u2019s Jeffrey Curry, nothing. In a recent interview<\/a> with Bloomberg, Currie said, \u201cYou\u2019d have to get a really high price before you start to see it damage demand<\/em>,<\/em>\u201d<\/em> adding that higher oil prices were actually good for the global economy because \u201c<\/em>higher oil prices lead to creation of global excess savings \u2013 petrodollars<\/em>,\u201d<\/em> which are then invested again globally, stimulating further demand.<\/p>\n

In case anyone suspects there is something wrong with this rosy picture, they are right. For starters, these \u201cglobal excess savings\u201d will only come after oil producers close their budget gaps. Saudi Arabia alone has budgeted a deficit of more than US$50 billion<\/a> for this year. It will be a while before it gets to have any savings, let alone excessive ones, to invest globally and stimulate oil demand. This is true of other major producers, too, as they all were hit hard by the last oil price crisis.<\/p>\n

Leaving budget deficits aside, there is also the problem with inflation. Since virtually every single economy in the world is dependent on oil, inflation is closely linked to prices. Higher oil prices mean higher fuel prices and higher fuel prices drive higher inflation.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Goldman: Oil Demand Will Continue To Soar Oil demand is growing, and production is falling. This is the message we have been receiving for a few weeks now with increasingly frequency, especially after OPEC\u2019s leader Saudi Arabia admitted it would like oil prices even higher than US$70. Like a genie from a lamp, the market […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[13719,589,592,5332,600,683,701],"class_list":["post-33707","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-irina-slav","tag-oil-demand","tag-oil-price","tag-oilprice-com","tag-opec","tag-reuters","tag-saudi-arabia"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33707"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33707\/revisions"}],"predecessor-version":[{"id":33708,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33707\/revisions\/33708"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}