Oil in 2017: Demand Drives a Positive Outlook

Published on26 JAN 2017

Higher demand is at the heart of Goldman Sachs Research’s positive commodity outlook for 2017. “When commodity demand is above commodity supply, deficits result, inventories are drawn down and scarcity premiums begin to arise—and that’s what’s driving our bullish expectations,” says Jeff Currie, head of Commodities Research for the firm. He expects oil will trade marginally higher as inventories normalize but remain bounded by low-cost shale production that’s defined the New Oil Order. 

It’s important to emphasize the OPEC production cut… is not the core of our positive outlook on oil and commodities, but rather where we are in the business cycle.

- Jeff Currie

Jeff Currie
Global Head of Commodities Research, Goldman Sachs