Goldman Sachs’ Head of commodities, Jeffrey Currie, told CNBC’s Power Lunch on Tuesday, the recovery in the US oil prices (WTI) is still weeks away, as cited by oilprice.com.
Key quotes
“The reason for the note of caution is because cutting oil production is not a simple matter. It takes time and costs money, and, perhaps more importantly, it could damage the well.
Shutting down a well is extremely expensive, and sometimes you damage the well forever.
We don’t think this is the end of it. You’re likely to see this continue to go on at least through the middle of May.
This will cause a lot of people to shut in (their wells). At these prices, there’s no way.
It reminds me of the ’80s in a way, but this thing is worse. Incredible, absolutely incredible.”
- Oil price volatility to remain high in coming weeks, says Goldman Sachs
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