Publication date: January 5, 2024
Political Stance and Abundant Supply Maintain Low Oil Prices

Political Stance and Abundant Supply Maintain Low Oil Prices

Political decisions and an ample supply of oil have contributed to a sustained period of low energy prices, countering the expected effects of demand-driven pricing.

Oil Industry

Former Goldman Sachs commodities chief Jeff Currie addressed the ongoing trend of low oil prices, pointing to a surplus supply exacerbated by 'political oil' rather than diminishing demand as the primary cause. Western policy impacted prices less than anticipated, with leaders maintaining production levels in line with political objectives. Currie suggested this has led to a consistent supply that offsets potential price surges, altering the financial landscape of the energy sector.