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Goldman's Currie Remains Bullish Crude

OIL

The banking crisis will be bullish for oil longer term because it will hit supply harder than demand according to Godman Sachs head of commodities Jeff Currie.

  • The greatest impact from a crisis that’s focused on regional US banks could be to limit the capital available to shale drillers, which would ultimately curb oil supply, he said.
  • If the FED pause rate hikes because of the banking crisis – Goldmans base case – then oil would benefit.
  • Currie said his conviction that there will be a commodities supercycle is stronger than before the current crisis.
  • He sees the oil market slipping into deficit in June at a $5 to $10 a barrel upside in oil prices.
  • Previously expecting Brent to hit $100 in the second half, now the investment bank expects the international benchmark to only rise to $94 per barrel in the coming 12 months.

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