Goldman Sachs Group Inc. is the latest organization to join those who predict a surge in demand for crude oil later in the year as the use of utilities makes the switch from oil to fire power plants. This switch has been influenced by high natural gas prices. Head of energy research Damien Courvalin stated on Bloomberg TV that Goldman Sachs projects that demands will surge by an extra 650,000 barrels per day.
As the world grapples with a global natural gas crisis that is causing prices to spike, Goldman Sachs expects crude oil prices to rise to $90 per barrel by the end of the year.
The New York City-based investment banking group is not alone in its oil demand projections. Last week, Rystad Energy AS predicted that the winter crunch could add an additional one million barrels per day in demand. Saudi Aramco revealed on Monday that it has already experienced demand for an additional 500,000 barrels of crude per day.
“We see it every winter, toward the end of winter, when you’re running out of gas. We see those spikes in oil burned,” Goldman Sachs’ Courvalin emphasized during his interview.
