Ole Hansen, head of commodity research at Saxo Bank
Oil price of $80–95/bl could be new normal in 2024
OPEC+ is prepared to defend $80/bl, but economic weakness and potential supply kept off the market will likely limit any upside as consumers acclimatise to higher prices, says Saxo Bank’s Ole Hansen
Elevated oil prices may be here to stay for the medium-to-long term, but it would take extreme geopolitical risks to push prices into triple digits in the immediate future, according to Ole Hansen, head of commodity research at Danish investment bank Saxo Bank. The oil market may well have found a new sweet spot in the $85–95/bl range, with consumers adjusting to the new price level and producers such as OPEC+ willing to defend a floor, Hansen told Petroleum Economist. The cross-commodity specialist also provided a reminder that energy prices drive inflation, not the other way around, and that higher commodity prices can persist in a recessionary period. What drives oil markets more, the mac
Also in this section
3 April 2025
Gas use in India has seen significant growth over the past year and looks set to accelerate further, even if the government’s 2030 goal remains a stretch
3 April 2025
IOCs and Western lenders are reluctant to commit to new oil and gas projects in African frontier countries
2 April 2025
The often-hidden yet powerful hand maintains supply chain linkages and global flows amid disruptions
2 April 2025
At some point it is likely that $70/bl will be quietly accepted as the producer-consumer sweet spot for a US administration having to balance both sides of the ledger
