Watch: What’s the undeniable math driving oil prices to $80 plus?
Michele Della Vigna, head of energy industry research at Goldman Sachs, discusses his forecast for the price of oil and overall outlook for the commodity. He speaks with Francine Lacqua and Tom Keene on “Bloomberg Surveillance.”
What is the near term forecast for oil?
“I am still with $82 in 6 months, and the key reason for that is demand,” said Vigna.
“Everyone is talking about US supply growth, but the key surprise is demand and strong economic environment which will make demand grow by 1.8 million bpd.”
He added demand growth will come from emerging markets like China and India, but also from the producing countries themselves, as high oil prices incentivize other activities and more consumption.
“In OECD countries, with good economic economic conditions there, people tend to upgrade their cars, and increase consumption.”