Popular Articles
Today Week Month Year


Oil prices to rise above $100 a barrel this year due to lack of investment in energy production capacity
By Arsenio Toledo // Feb 07, 2023

The price of oil will rise back above $100 a barrel this year, and will continue rising in 2024 due to serious supply problems as spare production capacity runs out.

This dire warning comes from senior Goldman Sachs analyst Jeff Currie, who spoke at an event in Riyadh, Saudi Arabia. "The commodity super cycle is a sequence of price spikes, with each high higher and each low lower," said Currie.

He warned that continued lack of spending in the oil industry, especially the necessary spending to boost production, is going to make oil companies unable to meet demand. This necessary spending includes exploration for new oil fields.

This lack of investment will be the main driver of higher prices, which the world will begin to feel by 2024. (Related: Regional emergency declared in eight states due to gasoline, diesel and jet fuel shortage.)

Oil prices have been volatile for years now, plunging to below $20 a barrel due to low demand caused by Wuhan coronavirus (COVID-19) lockdowns, before soaring to close to $130 a barrel at the beginning of Russia's special military operation in Ukraine, which disrupted global supply that was already falling far short of global demand at the time.

Other factors that have affected the price of oil since then include the price of transporting the fuels due to refineries maxing out capacities, as well as embargoes and sanctions on oil-exporting countries like Russia.

Oil to rise to $105 a barrel later this year

Goldman Sachs predicts that the price of Brent crude will climb to $105 a barrel by the final quarter of 2023. Currently, Brent crude is trading at between $75 to $80 a barrel.

But Goldman and other investment banks warned that the price of oil will go even higher by the year's end. Currie noted that, by May this year, the oil market will swing into a deficit of supply as demand continues to increase but is not matched by a similar increase in production. Instead, what little unused capacity global producers have, will be used up.

Currie noted that Goldman Sachs' view is that the Organization of Petroleum Exporting Countries-Plus (OPEC+) will unwind production limits and look to raise output sometime later this year. An OPEC+ market monitoring committee just announced recommendations to keep oil output unchanged for February.

Saudi Arabia is already planning to raise prices for both its Asian, European and American consumers despite keeping oil output largely unchanged, strongly suggesting that the kingdom sees demand for oil to rise significantly this month.

"Right now, we're still balanced to a surplus because China has still yet to fully rebound," said Currie. But, when demand outstrips supply by May, the situation will start to become problematic.

"Are we going to run out of spare production capacity," he asked. "Potentially by 2024, you start to have a serious problem."

During the conference, Minister of Energy Prince Abdulaziz bin Salman decried the lack of investment in refining capacity that is about to leave the world under-supplied. He pointed out that the Saudis have been warning about this for more than a year.

"All of those so-called sanctions, embargoes, lack of investments, they will convolute into one thing and one thing only: A lack of energy supplies of all kinds when they are most needed," warned the prince.

Learn more about the energy situation in America and other nations at NewEnergyReport.com.

Listen to this episode of the "Health Ranger Report" with Mike Adams, the Health Ranger, discussing Saudi Arabia's plan to end the dollar's dominance in the global oil trade.

This video is from the Health Ranger Report channel on Brighteon.com.

More related stories:

BLACKOUT bill: Minnesota lawmakers to pass legislation banning use of coal, oil and gas for state's electricity grid.

OPERATION SANDMAN now activated – Saudi Arabia announces END of dollar dominance in global oil trade … the dominoes begin to fall on the US empire.

Putin bans export of Russian oil to US and other nations that implemented a price cap.

Josh Sigurdson: Biden admin's plan to phase out oil use is ABSOLUTE INSANITY.

Another country decides to purchase oil with gold, further weakening US-dominated petrodollar amid global shift.

Sources include:

ZeroHedge.com

Bloomberg.com 1

Bloomberg.com 2

OilPrice.com

Finance.Yahoo.com

Brighteon.com



Related News
Take Action:
Support NewsTarget by linking to this article from your website.
Permalink to this article:
Copy
Embed article link:
Copy
Reprinting this article:
Non-commercial use is permitted with credit to NewsTarget.com (including a clickable link).
Please contact us for more information.
Free Email Alerts
Get independent news alerts on natural cures, food lab tests, cannabis medicine, science, robotics, drones, privacy and more.

NewsTarget.com © 2022 All Rights Reserved. All content posted on this site is commentary or opinion and is protected under Free Speech. NewsTarget.com is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. NewsTarget.com assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published on this site. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

This site uses cookies
News Target uses cookies to improve your experience on our site. By using this site, you agree to our privacy policy.
Learn More
Close
Get 100% real, uncensored news delivered straight to your inbox
You can unsubscribe at any time. Your email privacy is completely protected.