Oil has a 'lot of upside', copper prices already at supercycle levels – Goldman Sachs

In his interview with S&P Global Platts, Jeff Currie, head of commodity research at Goldman Sachs, suggests further upside for oil while flashing red signals for copper during the supercycle level.

The interview report said, “He (Currie) noted that copper is crucial to the oil outlook. While Goldman has a copper target of $10,000/mt, which is consistent with its $65/b oil price, Currie speculated as to whether copper could actually reach $40,000/mt at some point.”

The logic behind the supercycle, as conveyed in the piece by Goldman’s Currie, is the "structural upward shift in demand."

Key quotes

"I want to be long oil and hang on for the ride, there is a lot of upside here."

"Is it back to $150/b? I don't know... as it is a macro repricing we are talking about and everything needs to reprice."

“We have no copper, copper inventories just drew their largest observable draw we've seen in the last five weeks, prices are already back to supercycle levels and we have not even started the energy transition story of electrifying the world.”

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