CNBC - Oct 19 - Goldman - Oil supply warning signsWelll I agree this is not like the gas issue....oil pricing is NOT transitory....I don't believe the market truly accepts this yet. Oil is similar to coal....destruction of supply...all brought to you by the eco woke...everyday I thank that group.
Reference:
https://www.cnbc.com/2021/10/14/goldman-sees-sustained-high-prices-for-oil-in-the-coming-year.html
"Goldman Sachs says oil prices could be higher for much longer" "Oil prices could stay at higher levels in the years to come as demand rebounds while supply remains tight, according to Goldman Sachs’ head of energy research.
Damien Courvalin, who is also a senior commodity strategist, said the market fundamentals warrant higher prices and that the bank’s forecast for Brent crude is $85 per barrel for the next several years.
“This is not a transient winter shock like it could be for gas. This is actually the beginning of a material repricing higher for oil,” he told CNBC’s “Street Signs Asia” on Thursday."
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‘Warning sign’
What’s happening in the coal market — where prices are at record highs because supply shrank faster than demand — is a “warning sign” for oil, Courvalin said.
Oil drilling activity hasn’t recovered much on the supply side, while demand is growing, he said, describing the market as being in an “entrenched deficit.”
“We’re facing potential multi-year deficits and the risk of significantly higher prices,” he said.
There needs to be a realization that the transition to cleaner energy will take a long time, and that calls to stop investing in hydrocarbon supply will only create “much higher energy prices in the coming years,” he said."