Oil prices to settle in $55-$60 range in the long term – Goldman Sachs

In an interview with Bloomberg, Jeff Currie, Commodities Research Analyst at Goldman Sachs, said that oil prices will settle in the $55-$60 range in the long term.

Currie conducted a survey with oil industry leaders in Texas, asking them where they oil prices going over the long-term.

Key Quotes:

“The U.S. supply response seems to be gaining momentum much faster than previously thought.” 

“It’s because of two factors. One is productivity gains, but also access to capital.”

“In 2012 and 2013, it was a period when the oil [barrel] price started the year at something like $110.60 and finished the year at $110.50, but you still generated an 11 percent annualized return over that period.”