FAST FIVE: Biden's Federal Land Lease Ban To Send Oil Prices Higher: Goldman

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Combined with a push for greater fiscal spending – and hence higher energy demand – these initial actions reinforce our constructive view on oil and gas prices.

in 2021-22, as a ban on permitting would still leave a window of up to two years to drill from elevated outstanding permits.

Larger boosts to disposable income and government spending will make this recovery energy intensive long before it hurts oil demand, in our view, especially as they come alongside those in China and the EU.

While the US president has significant freedom to re-enter the JCPOA agreement (see Appendix),the confirmation hearing for the US Secretary of State and Treasury Secretary focused on the need for consultation with Congress and US allies, on Iran being non-compliant and on the goal of reaching a stronger and longer new deal.

The oil market experienced such an outcome in 2018, when the loss of Iran production and strong economic growth pushed oil prices sharply higher.

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