The goldilocks price for oil is around US$70 per barrel.
<p>An item from oil news site <a href="https://www.rigzone.com/news/this_is_the_goldilocks_price_for_oil-13-jul-2023-173324-article/" target="_blank" rel="nofollow">Rigzone</a> quotes an analyst view that the sweet spot for oil pricing is around US$70 per barrel:</p><p>FGE’s Director of Short-Term Global Oil Service & Head of Upstream Oil:</p><ul><li>“the problem right now is that the world thinks it needs a higher price”</li><li>
“Financial institutions think international oil companies need a higher price to incentivize upstream development, OPEC producers want a higher price to cover fiscal budgets,” </li><li>
“But in reality, over $70 and the cost of energy starts to create hurt [in] the macro picture, while also incentivizing too much supply growth,”</li><li>
“International oil companies can still make good money at $70, OPEC can make their budgets work at $70, and demand everywhere else can cope”</li></ul>
This article was written by Eamonn Sheridan at www.forexlive.com.
Leave a Comment