Don’t Rule Out An Energy Crisis: Goldman Sachs

Oct 6, 2021

Don't Rule Out An Energy Crisis: Goldman Sachs

Last week, Goldman Sachs' energy research team drew a lot of attention on Wall Street when they predicted Brent crude oil will hit $90 a barrel by the end of the year.

Now they're back with another reality check: given the market's supply/demand fundamentals, an energy crisis cannot be ruled out.

On Yahoo Finance Live, Goldman Sachs director of energy research Damien Courvalin stated, "When you enter into winter with critically low inventories, it has the potential to be a disaster." "A cold winter would be required to truly face the threat of gas shortages. What brought us here? Since COVID, the economic recovery has been [about] reduced mobility, less oil consumption, and higher power demand. There has been a structural growth in power use, which has been met by under-investment on the supply side. Today, there appears to be a crisis, but it will not be addressed in the near future. Next winter, this is a threat that will resurface."

Energy prices of all types have gone into hyperdrive since Goldman's prediction on oil a week ago, owing to increasing supply worries throughout the world.

Natural gas prices in the United States are hovering around levels last seen in 2008. Natural gas prices in the United Kingdom have risen by 60% in the previous two days at one point during Wednesday's session. Brent crude oil is up 4% and has surpassed $81 per barrel.

In China, rising coal prices have resulted in rolling blackouts.

"We're not there yet [in terms of outages in the United States]. We're attempting to mitigate the winter threat. Given the dangers associated with weather unpredictability, we may expect significant volatility "Courvalin continues.

According to Goldman Sachs analyst Neil Mehta, there are some optimistic bets to be made in the oil patch to ride the current gusher in prices for black gold and natural gas.

Regarding possible winners from the energy rally, Neil Mehta, a colleague of Courvalin's, recently maintained Buy ratings and high upside price targets on oil giants ConocoPhillips and ExxonMobil. ConocoPhillips is expected to yield 20% to investors over the next 12 months, while ExxonMobil is expected to return 24%.

Subscribe Our Newsletter

Bank Earnings Are Going To Be Confusing. They Could Be Ugly, Too
Bank Earnings Are Going To Be Confusing. They Could Be Ugly, Too

Trading will also prove to be a challenging area. The first quarter was clearly volatile, but it is unclear if it benefitted banks. Nonetheless, gains in currency and commodities trading should outweigh losses in stocks.

Banks and Finance
Stock Market Predictions 2024: Analyst Has a New Target for 2024

Milena

Stock Market Predictions 2024: Analyst Who Correctly Predicted Gold’s Rally Has a New Target for 2024

With new stock market predictions 2024 here's what gold prices and gold stocks may do next..

Stock Market Forecast
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Constantine

How Many Trading Days in a Year Are There?
Learn what a trading day is, how many there are in a year, and what factors influence the number of trading days in the framework of different markets.

discover
What are Futures Contracts, and How to Trade?

Hazem

What Are Futures Contracts, and How Do They Work?

Futures are flexible instruments to hedge against market risks and expand your portfolio. What are futures, and how do they work? Find the answer here.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.