Oil to Hit $80 in Q3, Goldman's Currie Predicts

The video discusses the market's reaction to a recent announcement, highlighting the consensus view on demand and supply factors. It examines the demand side, noting strong numbers in the US and the impact of manufacturing and growth in the West. The supply side is analyzed with a focus on OPEC's role and the inelastic nature of supply. Price projections are made, with expectations of $80 per barrel, and the lack of investment in supply is highlighted as a significant issue.

What is the main reason for the market's benign reaction to the recent announcement?

• Increased mobility in the US

• Temporary lockdowns in Europe

• Consensus view on production cuts

• Manufacturing growth in Germany

Which countries were seeking exemptions from OPEC's production cuts?

• Saudi Arabia and UAE

• Russia and Kazakhstan

• Iraq and Iran

• Germany and France

What is the primary reason for the inelastic nature of the current oil supply?

• Underinvestment in production

• Lockdowns in Europe

• High demand in the US

• Increased drilling in the US

What is the expected target price for Brent crude oil in the third quarter?

• $90 per barrel

• $80 per barrel

• $70 per barrel

• $60 per barrel

What is a significant factor contributing to the lack of new production in the commodity market?

• Increased supply from OPEC

• No Greenfield investment in metals

• Strong demand in Japan

• High export rates in Chile