Goldman Sachs Warns: Oil Prices Will Surge to $100 this Year

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

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.

Read also

Oil nears $90, the highest level since 2014 when Goodluck Jonathan was president, but this time it is headache

Oil installations
Aerial view morning time of petro chemical plant and oil refinery, power plant working with crude oil Storage tank at sunrise near mountain green environment concept Credit: Stock photo
Source: Getty Images

By August, Goldman anticipates oil stocks in big economies to sink to their lowest level since 2000.

What the ban said:

Do you have a groundbreaking story you would like us to publish? Please reach us through!

"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.

Read also

Good news for Nigerians as NLNG crashes cooking gas price, suspends export

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 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.


Online view pixel