Top Analyst Predicts ‘New Oil Order’

MOORPARK, CA - SEPTEMBER 23: Smoke blows past oil wells at sunset on the eastern flank of the 16,000-plus-acre Guiberson fire, burning out of control for a second day as Red Flag warnings continue in southern California on September 23, 2009 near Moorpark, California. A Red Flag warning means critical wildfire weather, based on a combination of high temperatures, low humidity and Santa Ana winds, is occurring. Several large wildfires broke out in triple-digit temperatures on the first of Red Flag warnings.
National Journal
Ben Geman
Dec. 6, 2013, 9:12 a.m.

The surge in U.S. oil pro­duc­tion has been get­ting all the head­lines, but a new re­port pre­dicts that an­oth­er big — and re­lated — shift in the glob­al crude mar­ket is loom­ing.

Re­u­ters re­ports on a new re­search note au­thored by Gold­man Sachs chief com­mod­ity ana­lyst Jef­frey Cur­rie, who says that a “new oil or­der” looms.

Ac­cord­ing to their ac­count, Cur­rie sizes up the ef­fect of the coun­try’s shale boom that will keep U.S. prices down and U.S. de­mand grow­ing faster than China’s and In­dia’s for the first time in a dec­ade.

“As oil de­mand lead­er­ship trans­itions to de­veloped mar­kets from emer­ging mar­kets, this not only rep­res­ents a sig­ni­fic­ant fun­da­ment­al shift, but com­bined with sig­ni­fic­ant de­veloped mar­ket-led pro­duc­tion, this turns the pre­vi­ous com­mod­ity cycle up­side down,” he writes.

Click here for much more on the ana­lys­is.

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