After half a decade of low oil prices, things have changed pretty dramatically in recent months. Global benchmark oil prices are touching $120 a barrel this week, and gasoline prices in parts of the U.S. are topping out close to $7 a gallon. High prices have become a massive headache for policymakers already worried about rising inflation as the economy tries to restart following two years of pandemic shutdowns.
While it is easy to point to Russia’s war in Ukraine and the US and European embargo of Russian oil as the primary cause of high prices, the reality is that the oil market crisis is far bigger and more complex than the Russian situation alone. So how did we get here? What resolves this crisis? And ultimately, what does this mean for the transition to a green economy?
To help answer those questions, EPIC’s Executive Director Sam Ori recently sat down with Jeff Currie, global head of commodities research at Goldman Sachs. At Goldman, Jeff spends much of his time researching the oil market and forecasting oil prices to help guide investment strategies. Under his leadership, the commodities research team consistently ranks number one. Jeff is a CNBC Analyst of the Year and all around commodity market guru. And, he got his PhD from the University of Chicago.