Goldman's Currie on Favorite Commodity: Oil, Oil and More Oil

The video discusses the current bullish state of the oil market, driven by a surge in demand and limited supply outside of OPEC. With inventories dropping and time spreads tightening, there's a significant upside risk in oil prices. The market is expected to remain tight until late in the year, with potential price spikes. The shale industry is under pressure, with private companies likely to act first. Investment strategies are shifting towards return on equity rather than volumetric growth. OPEC's ability to increase supply is limited, with Russia and Saudi Arabia playing key roles in addressing the deficit.

What is the main reason for the current bullish state of the oil market?

• Increased investment in US shale

• Decreasing demand for oil

• OPEC's ability to meet quotas

• Surging demand and inelastic supply

What is the expected average price target for oil in the third quarter?

• $80.00 a barrel

• $60.00 a barrel

• $70.00 a barrel

• $90.00 a barrel

Why are private companies expected to act first in the oil market?

• They have larger reserves

• They are less constrained by public scrutiny

• They have better technology

• They are more focused on volumetric growth

What is necessary for capital to be redirected back into the oil sector?

• Low return on equity

• High volumetric growth

• Increased government subsidies

• High return on equity

What is the main challenge for OPEC+ in increasing oil supply?

• High production costs

• Limited capacity of Russia and Saudi Arabia

• Excessive reserves

• Lack of demand