{"id":60106,"date":"2021-10-26T07:59:44","date_gmt":"2021-10-26T12:59:44","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60106"},"modified":"2021-10-26T07:59:44","modified_gmt":"2021-10-26T12:59:44","slug":"oil-prices-will-remain-high-for-years-to-come","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60106","title":{"rendered":"Oil Prices Will Remain High For Years To Come"},"content":{"rendered":"<h3><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/Oil-Prices-Will-Remain-High-For-Years-To-Come.html?fbclid=IwAR0_EueZqRHU8invMjWYEneNX5IRhojcQGdswMymrj5-2L2asyWD-MccZ3A\">Oil Prices Will Remain High For Years To Come<\/a><\/h3>\n<div id=\"key_points\" class=\"wysiwyg clear\">\n<ul>\n<li aria-level=\"1\">A growing number of major investment banks are turning bullish on oil in the medium to long term.<\/li>\n<li aria-level=\"1\">A lack of investment is leading to supply deficits as demand rebounds to pre-COVID levels.<\/li>\n<li aria-level=\"1\">Rebounding consumption and tight supply could push oil prices even higher.<\/li>\n<\/ul>\n<\/div>\n<div class=\"articleImageContainer\"><picture class=\"lozad-picture singleArticle__articleImage\" data-iesrc=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2021-10-25_ij7igg8fs3.jpg\" data-loaded=\"true\"><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/420x175\/2021-10-25_ij7igg8fs3.jpg\" media=\"(max-width: 480px)\" \/><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2021-10-25_ij7igg8fs3.jpg\" media=\"(min-width: 480px)\" \/><img \/><\/picture><\/div>\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>Six years after former BP chief executive Bob Dudley\u00a0<a href=\"https:\/\/www.cnbc.com\/2015\/04\/21\/bp-ceo-oil-prices-will-stay-lower-for-longer.html\" target=\"_blank\" rel=\"noopener\">said<\/a>\u00a0that \u201cthe industry needs to prepare for lower for longer,\u201d a growing number of major investment banks now expect \u201chigher for longer\u201d oil prices.<\/p>\n<p>Rebounding global oil consumption amid tight supply\u2014contrary to some forecasts last year that indicate demand may have peaked or was close to its peak\u2014as well as years of underinvestment in new supply following the 2015 crash, have prompted Wall Street banks to raise significantly their projections for oil prices in the short and medium term.<\/p>\n<p>Oil prices have hit multi-year highs in recent days, with\u00a0<a href=\"https:\/\/oilprice.com\/oil-price-charts\/45\">WTI Crude<\/a>\u00a0at its highest since 2014 and\u00a0<a href=\"https:\/\/oilprice.com\/oil-price-charts\/46\">Brent Crude<\/a>\u00a0at the highest level since October 2018.<\/p>\n<p>Even after the latest rally, prices still have headroom to rise further, many major investment banks believe.<\/p>\n<p>Goldman Sachs, for example, sees\u00a0<a href=\"https:\/\/oilprice.com\/Energy\/Oil-Prices\/Goldman-Sachs-Hikes-Oil-Price-Forecast-To-90.html\">Brent hitting $90<\/a>\u00a0per barrel at the end of this year, up from $80 expected earlier. The key driver of Goldman\u2019s higher forecast is global oil demand recovery amid still a weaker supply response from non-OPEC+ oil producers.<\/p>\n<p>The investment bank also sees sustained higher oil prices in the coming years.<\/p>\n<p>Fundamentals warrant higher oil prices, and the bank\u2019s forecast for the next several years is $85 a barrel, Damien Courvalin, Head of Energy Research &amp; Senior Commodity Strategist at Goldman Sachs, told\u00a0<a href=\"https:\/\/www.cnbc.com\/2021\/10\/14\/goldman-sees-sustained-high-prices-for-oil-in-the-coming-year.html\" target=\"_blank\" rel=\"noopener\">CNBC<\/a>\u00a0earlier this month.<\/p>\n<p>Oil demand will set record highs next year and the year after that, and we need to see a ramp-up in investment, he said.<\/p>\n<p>\u201cWe\u2019re facing potential multi-year deficits and the risk of significantly higher prices,\u201d Courvalin told CNBC.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Oil Prices Will Remain High For Years To Come A growing number of major investment banks are turning bullish on oil in the medium to long term. A lack of investment is leading to supply deficits as demand rebounds to pre-COVID levels. Rebounding consumption and tight supply could push oil prices even higher. Six years [&hellip;]<\/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":[2,3],"tags":[162,589,592,596,5332,14603],"class_list":["post-60106","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-consumption","tag-oil-demand","tag-oil-price","tag-oil-supply","tag-oilprice-com","tag-tsvetana-paraskova"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60106","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=60106"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60106\/revisions"}],"predecessor-version":[{"id":60107,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60106\/revisions\/60107"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}