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The New Oil Order: On Hiatus

07 FEB 2018
TOPICS: Commodities | Economic Outlooks

The shift from a lower-for-longer to a higher-for-now oil price environment is set to continue in 2018 according to Goldman Sachs Research’s Jeff Currie, driven by a faster-than-expected rebalancing of global crude inventories. But the “New Oil Order” era of low-cost shale transformation isn’t over, he says. The next leg of supply growth from shale producers should once again put downward pressure on prices, bringing them lower longer-term.  

The stronger-than-expected demand for oil was really being driven by what we call the ‘3 Rs:’ we saw a reflation in commodity prices, releveraging and reconvergence of global growth.

- Jeff Currie

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