Politics, Not Low Demand, Behind Falling Oil Prices Says Former Goldman Sachs Executive
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Low demand is not to blame for falling oil prices according to former Goldman Sachs commodities chief Jeff Currie. Instead, politics has kept oil supply high.
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Governments backed off alternative energy policies to help boost supply and relieve consumer pressure, leading to excess supply.
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Loosened sanctions on places like China allowed extra crude inflows, adding to supply from Iran, Venezuela, Russia.
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Less focus on environmental policy removed curbs that could raise prices, leading to record oil and coal use.
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As inflation falls, Currie expects lawmakers to refocus on green policy and global regulation, potentially raising oil prices given underinvestment.