Goldman Sachs' Commodities Research Chief, Jeff Currie, to Depart After 27 Years

August 07, 2023: Jeff Currie, a renowned commodities analyst at Goldman Sachs, is set to leave the firm after an illustrious 27-year tenure. Throughout his career, Currie gained recognition for making bold predictions in the commodities market, notably foreseeing the surge in commodity prices during the 2000s, known as the “commodities supercycle.” However, in recent times, some of his predictions have faced challenges, leading to his decision to retire.

Key Points:

Currie’s Legacy: Jeff Currie served as the face of Goldman Sachs’ commodities research for nearly three decades, earning a reputation for his willingness to take strong stances on market calls. He gained fame by correctly predicting the boom in commodity prices during the 2000s, especially in oil.

The Commodities Supercycle: In 2004, Currie coined the term “Revenge of the Old Economy,” anticipating a surge in commodity prices due to underinvestment. His forecast proved accurate, and the commodities market experienced a supercycle, with crude oil reaching record highs in 2008.

Recent Challenges: Currie revived his prediction for another commodities supercycle in recent years, citing pandemic stimulus measures and rebounding economic activity. However, these predictions faced obstacles, and the market’s response was mixed. Some of his forecasts needed to align with actual price movements.

Leadership Transition: Currie’s retirement leaves a leadership gap in Goldman Sachs’ commodities research division. The responsibilities will be shared among Daan Struyven, Sam Dart, and Nick Snowdon, who are in charge of oil, natural gas, and metals research, respectively.

Currie’s Influence: Throughout his tenure, Currie’s thought leadership and market insights benefited Goldman Sachs greatly, enabling the firm to identify fundamental commodity market themes early on.

Actionable Takeaways:

For investors and market participants:

• Monitor the commodities market for potential shifts and trends in response to Currie’s departure.
• Stay updated on the insights and forecasts of the new co-leads, Daan Struyven, Sam Dart, and Nick Snowdon.
• Consider the historical accuracy of predictions and exercise caution in response to bold market calls. Market dynamics can be complex and subject to multiple factors.

For Goldman Sachs and financial institutions:

• Evaluate the impact of Currie’s departure on the commodities research division and the firm’s overall market influence.
• Assess and adapt strategies for future market predictions, considering the mixed success of bold calls and potential market uncertainties.
• Currie’s departure marks the end of an era in Goldman Sachs’ commodities research, and the market will be watching closely to see how his successor and the co-leads will shape the firm’s future insights and forecasts.