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
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
