Emmanuel Addeh in Abuja
Despite the market panic caused by the collapse of two United States banks, Goldman Sachs has remained bullish, with the Global Head of Commodities for the group, Jeff Currie, insisting that China’s recovery will boost prices.
“We would argue you are buying the dip at this point. I have never seen a market sell off that sharply, but retain a bullish structure,” Currie said, during a Bloomberg interview.
Goldman is still a believer that we will see a “solid recovery” from China toward the latter part of the year, as economic activity snaps back from its strict COVID-19 lockdowns.
China activity—and therefore oil demand—has shown signs that it could be ready to take off, although a market panic over the possibility that two U.S. bank failures could start a contagion has threatened the would-be rally.
West Texas prices has begun to fall off their $122 highs in early June of last year, trading between the low $70s and $80s for the better part of this year. But two weeks ago, when news broke of the SVB bank collapse, WTI sank further, to just $66.93 per barrel.
Last week, Goldman said that it expected higher oil prices 12 months from now, pointing to a forecast demand increase in China to more than 16 million barrels per day, oilprice reported.
