Monday, May 03, 2010

Goldman Sachs: expect oil prices to rise

SHOOT: I believe they'll rise by a margin more than Goldman Sachs are saying, and I suspect Goldman are prognosticating conservatively. What would prevent them from making predictions, see the market react, and then betting against some of these reactions?

The Gulf slick is a precursor to probably a terrible season. They've predicted intense Hurricane activity this year - no El Nino to scrub the tops of the whirling cloud masses this year. I think we'll go beyond $100 after June/July, and touch on $110 before 2011.
clipped from
Oil prices extend gains
"The potential disruption of oil tanker traffic in the Gulf of Mexico is already having an impact on oil prices." Goldman Sachs said in a report. "Traffic of oil service boats and oil tankers through the Gulf will likely be slowed."
Oil is near an 18-month high of $87, last touched in early April.
"The past two weeks have brought weak U.S. oil inventory data that puts into question the much stronger macroeconomic data," Goldman said.
Goldman said it expects prices to rise to $94.50 a barrel in three months and to $99 a year from now.
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