Goldman Sachs says artificial intelligence could hurt oil prices over the next decade

Goldman Sachs on artificial intelligence cutting oil prices ahead:

• “AI could potentially reduce costs via improved logistics and resource allocation … resulting in a $5/bbl fall in the marginal incentive price, assuming a 25% productivity gain observed for early AI adopters,”
• Goldman expects a modest potential AI boost to oil demand compared to demand impact to power and natural gas over the next 10 years.
• “We believe that AI would likely be a modest net negative to oil prices in the medium-to-long term as the negative impact from the cost curve (c.-$5/bbl) – oil’s long-term anchor – would likely outweigh the demand boost (c.+$2/bbl),”

The info comes via an interesting Reuters article, here’s the link for plenty more.

This article was written by Eamonn Sheridan at www.forexlive.com.