Goldman Sachs Warns: Oil Prices Will Surge to $100 this Year
- The prices of crude oil will sell for N45,500 per barrel this year according to predictions by Goldman Sachs
- Oil prices hit an eight-year high on Tuesday, January 18, 2022, selling at $88 (N36, 520) per barrel of crude oil
- The Nigerian government has consistently cited low prices of oil and low output caused by restive environments in oil producing communities as excuses for low performance
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Investment banking company, Goldman Sachs has said the price of oil may hit $100 (N41,500) per barrel this year and may continue to rise.
The CNN reported that the bank, on a Monday evening, reports to clients, the bank back up strong calls and cited strong fundamentals in the oil industry, shocking large supply shortage and declining firepower from the Organisation of Exporting Countries (OPEC) and its partners.
Source: Getty Images
By August, Goldman anticipates oil stocks in big economies to sink to their lowest level since 2000.
What the ban said:
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"Importantly, we are not forecasting Brent trading above $100/bbl on an argument of running out of oil as the shale resources is still large and elastic."
Oil prices climbed on Tuesday, January 18, 2022 to new seven-year highs, dealing a blow to the Biden administration's efforts to contain prices at the pump.
US crude jumped 1.9% to finish at $85.43 a barrel, the highest close since October 13, 2014.
The latest landmarks mean the oil market has completely recovered from both the US-led intervention into energy markets in November and the scare given by the Omicron variant. Both of those forces drove energy prices lower in November and early December.
Excuses by Nigerian government
Nigerian government has been hammering on lean resources to meet financial and infrastructural challenges, citing drop in oil prices, reduced output caused by unrest in the Niger Delta areas of the country.
The country is gearing up for the removal of oil subsidies, a move President Buhari said he is not aware of, according to the country's Senate President, Ahmed Lawan.
Oil prices nears $90 since 2024
Legit.ng reports that What should have been good news for Nigeria is set to be a financial headache as the international benchmark for oil prices surged closer to $90 per barrel.
According to Bloomberg, on the morning of Wednesday, 18 January 2021, crude price traded was sold at $88.69.
Wednesday's price represents an eight-day consecutive rise as demand continues to outweigh supply.
Source: Legit.ng
