Goldman Joins Chorus Calling for Higher Oil Demand for Power Use
- Bank says oil demand my jump by 650,000 barrels a day
- Surging natural gas prices driving utilities to switch to oil
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Goldman Sachs Group Inc. sees an extra 650,000 barrels a day of crude demand later this year as utilities wrestling high natural gas prices switch to oil to fire power plants, head of energy research, Damien Courvalin said on Bloomberg TV Monday.
As the global natural gas crisis worsens, causing prices to spike to record highs, the company expects power switching to cause oil demand and oil prices to rise. Courvalin reiterated that the bank estimates Brent crude futures will rise to $90 barrel by the end of the year.