Goldman Sachs, Once Again, Warns Crude Oil Will Reach $149 By End Of Year
Global investment bank and securities firm Goldman Sachs is once again predicting the price of crude oil will climb to $149 a barrel by the end of 2008. Back on August 19, Goldman Sachs analysts issued a year-end price forecast of $149 a barrel. U.S. crude oil prices hit an all-time high of $147.27 a barrel back on July 11.
According to the CNBC website today:
The price of oil will spike back to $149 a barrel by the end of the year, despite its current slump and negative sentiment regarding demand for oil, Goldman Sachs wrote in a market report on Wednesday.
Chinese oil import data for August are expected to be weak as the country relied on existing inventories during the Olympic Games, but this is likely to change, the analysts said.
“We continue to expect that strong Chinese buying will return to the market as China restocks after the Games,” Goldman Sachs wrote. “For oil we continue to believe this will require (West Texas intermediate) crude oil prices to move back to $149/barrel by year end.”
Why believe Goldman Sachs analysts, as opposed to the “experts” now appearing on financial news channels claiming that the oil “bubble” has popped? Back on December 12 of last year I wrote:
Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York, told Bloomberg today that, “Goldman has credibility because they were the first to predict that crude would spike to $100. A sharp increase in their forecast catches everyone’s attention.” Arjun Murti, a New York-based Goldman Sachs analyst who covers oil producers and refiners, roiled markets in March 2005 when he reported that oil prices could touch $105 a barrel during a “super spike” because demand was stronger than anticipated.
Source:
“Goldman Sticks with $149 Oil Forecast”
CNBC, September 3, 2008
September 16th, 2008 at 8:53 am
Goldman has no clue on the direction of oil. All they have is a desire for the price to climb so their commodities traders can make a ton of cash. Goldman is without a doubt trying once again to move the market and should be held accountable in a court of law. Looking at today’s report from Goldman, they are now going to enter panic mode and no doubt try and manipulate the market for their own gain. Look at the history over the last year - how many financial services firms had their analysts predict super high priced oil which cause the market to move way up (and not because of good analysis around supply and demand). The market is driven by emotion and they are driving it to their own end. I will never ever do business with Goldman ever again! I wish everyone else would do the same!
September 17th, 2008 at 8:05 am
Thanks for the comment Citizen1.