Oil may surge to $90 a barrel if the approaching winter in the northern hemisphere proves colder than normal, said Jeff Currie, global head of commodities research at Goldman Sachs Group Inc., Report informs referring to Bloomberg.
Such a rise would be $10 higher than the bank’s current forecast and would be accompanied by a prolonged period of high natural gas prices that already have had disastrous consequences for UK power providers.
Tightening gas supplies in Europe will elevate demand for oil as an alternative at a time when global crude output is constrained, Currie said during a Bloomberg Television interview on September 22. Post-hurricane disruptions in the US Gulf of Mexico were among the worldwide factors he cited.
As of 9:14 a.m. (GMT+4), the price of November futures for Brent crude oil rose by 0.28% to $76.4 per barrel, November futures for WTI rose by 0.22 percent to $72.39 per barrel.