Goldman Sachs Says Power Costs Not Excessive Sufficient to Curb Demand

Power costs must climb additional for Individuals to begin chopping consumption, in accordance with Goldman Sachs Group Inc.

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(Bloomberg) — Power costs must climb additional for Individuals to begin chopping consumption, in accordance with Goldman Sachs Group Inc.

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“Costs aren’t excessive sufficient but to cut back demand progress sufficiently,” Damien Courvalin, Goldman’s head of vitality analysis and a senior commodity strategist, stated in a Bloomberg Tv interview on Friday.

Oil costs have surged greater than 60% this 12 months, exacerbated by Russia’s invasion of Ukraine, with West Texas Intermediate futures buying and selling round $120 a barrel. Tighter provides have helped push the prices of transportation fuels to information, with the nationwide common of gasoline pennies away from $5 a gallon and diesel at $5.753 a gallon, in accordance with auto membership AAA.

With financial progress nonetheless strong world wide, oil demand is rising, Courvalin added. And up to now, the momentum has proven that shopper resilience is “nonetheless enough to soak up the upper costs on the pump.”

Regardless of file gas costs, US gasoline demand ticked as much as the very best stage this 12 months, in accordance with the most recent information obtainable from the Power Data Administration. Even so, demand continues to be down by round 1% from this time final 12 months and practically 6% from the identical interval in 2019.

Power costs must climb additional for Individuals to begin chopping consumption, in accordance with Goldman Sachs Group Inc.

Article content material

(Bloomberg) — Power costs must climb additional for Individuals to begin chopping consumption, in accordance with Goldman Sachs Group Inc.

Article content material

“Costs aren’t excessive sufficient but to cut back demand progress sufficiently,” Damien Courvalin, Goldman’s head of vitality analysis and a senior commodity strategist, stated in a Bloomberg Tv interview on Friday.

Oil costs have surged greater than 60% this 12 months, exacerbated by Russia’s invasion of Ukraine, with West Texas Intermediate futures buying and selling round $120 a barrel. Tighter provides have helped push the prices of transportation fuels to information, with the nationwide common of gasoline pennies away from $5 a gallon and diesel at $5.753 a gallon, in accordance with auto membership AAA.

With financial progress nonetheless strong world wide, oil demand is rising, Courvalin added. And up to now, the momentum has proven that shopper resilience is “nonetheless enough to soak up the upper costs on the pump.”

Regardless of file gas costs, US gasoline demand ticked as much as the very best stage this 12 months, in accordance with the most recent information obtainable from the Power Data Administration. Even so, demand continues to be down by round 1% from this time final 12 months and practically 6% from the identical interval in 2019.