In a Bloomberg interview this morning, Jeff Currie from Goldman Ballsachs, says there is a fucking wall, mind you, of supply coming to oil markets in 2017. He cites assholes in the shale, to Russia and all the way to Libya as being impediments to capricious price gains and associates these indelible facts as the reason why OPEC chose to freeze oil production at RECORD FUCKING LEVELS.
“We’re still seeing a lot of oil enter this market,” Currie said in an interview with Tom Keene and Francine Lacqua. “It’s hard for this market to go above $55.”
“The sweet spot is 2017” for supplies coming from new projects reaching world markets, Currie said. The outlook for an oversupplied market next year drove OPEC’s announcement in Algiers last week that it will cap production at 32.5 million to 33 million barrels a day, he added.
Shale producers are hedging their output as soon as prices climb to a range of $50 to $55 a barrel, allowing them to continue drilling, Currie said. The number of rigs targeting crude in the U.S. has risen for a fifth week to the highest since February, Baker Hughes Inc. said Sept. 30.
While investment in new oil supply has been cut, any shortage in the market is “years off,” Currie said. A “bull state,” where output shortfalls push prices above $100 a barrel, couldn’t happen before 2019 or 2020, he said. Oil futures haven’t traded above $100 since 2014.
I know, this is scandalous blasphemy, especially with WTI kicking ass this morning. Take it up with Goldman and leave me out of it.
central planners jacked crude up — should be 25 and under. total scam.