​Oil Market To Swing Into A Deficit On China Rebound, Russia Sanctions: Goldman Sachs

Rising crude oil demand from China and sanctions on Russian oil will contribute to a deficit in global oil markets from Q2, while producers in response will tap spare capacities, leaving it lower than it was before, which will support an imbalance between supply and demand, Jeffrey Currie, commodity analyst at Goldman Sachs said.

• “Right now, we’re still balanced to a surplus because China has still yet to fully rebound. Are we going to run out of spare production capacity? Potentially by 2024 you start to have a serious problem,” Currie said.
• “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,” he added.