Goldman’s Currie: Downside Oil Volatility Is Likely to Be Very High

The video discusses the potential for significant market volatility due to a crude oil build-up, which could lead to bottlenecks in logistics and storage. Historical examples are used to illustrate how breaches in system capacity can cause drastic price fluctuations. The video emphasizes the importance of supply-demand adjustments and the challenges posed by increased storage capacity. It concludes with a discussion on future logistics challenges and the potential for high volatility in the coming months.

What is a critical factor that can lead to extreme lows in crude oil prices?

• Increased demand for crude oil

• Efficient logistics and storage

• Bottlenecks in logistics and storage

• Stable market conditions

What happened to oil prices in Minnesota in 2016?

• They doubled in value

• They remained stable

• They went negative

• They reached record highs

What typically happens when the system breaches storage capacity?

• Demand increases

• Prices collapse

• Prices stabilize

• Supply decreases

What is the immediate effect when supply exceeds demand and storage is full?

• Supply is increased

• Prices rise

• Demand decreases

• Supply is forced down

What is a key issue likely to arise from breaching logistics and delivery capacity?

• Record levels of volatility

• Stable oil prices

• Increased storage capacity

• Decreased market volatility