Skip to comments.New 'super-spike' might mean $200 a barrel oil(so says Goldman Sachs)
Posted on 03/07/2008 7:24:17 PM PST by TigerLikesRooster
New 'super-spike' might mean $200 a barrel oil
Goldman's projections foretell persistent turbulence in energy prices
By Steve Gelsi, MarketWatch
Last update: 1:42 p.m. EST March 7, 2008
NEW YORK (MarketWatch) -- With $100-a-barrel here for now, Goldman Sachs says $200 a barrel could be a reality in the not-too-distant future in the case of a "major disruption." Goldman on Friday also boosted by $10 the low end of its 2008-2012 projected range for crude to $60 a barrel -- significantly lower than current prices, to be sure, but a possible mark for oil if "normalized" trends return to the marketplace.
With the dollar's fall continuing and financial markets roiled by the credit crunch, commodities like oil have been drawing the fancy of increasing numbers of investors. Accordingly, Wall Street firms have been eager to adjust forecasts to incorporate fresh data on the global economy and energy supplies.
Goldman analysts Arjun Murti, Kevin Koh and Michele della Vigna said prices have advanced more quickly than Goldman had forecast back in 2005, when it predicted a range of $50 to $105 a barrel as part of its "super-spike" oil theory.
"We characterized the upper end of the band as more likely to be driven by geopolitical turmoil and that recession was a key risk to our view," the analysts said. "In fact, oil prices have reached $100 a barrel without extraordinary turmoil, and the U.S. currently appears to be in recession."
(Excerpt) Read more at marketwatch.com ...
Too bad the Libs weren’t right...if Iraq were a war for oil stories like this wouldn’t be published.
Spinning for profits.
She’s a stock analyst, not a commodities analyst. You should learn what you are talking about before you start talking smack.
“I am sure that Goldman Sachs has already positioned itself to benefit from super-hike.”
That's their job. But it doesn't necessarily mean that this forecast is bogus.
$200 oil right before the election might be the best thing in the long run.
They'll do what they can to pump oil up in the short term...increase their short position as a hedge...and then wait for the this, the "next bubble" to crash.
There is a point (we obviously haven’t reached it yet) where the price of oil becomes so prohibitive, threatening the economic well being of any importer of petroleum, that the industrial nations which depend on oil will collectively say ‘enough is enough’ and their military forces will descend upon the Middle East like a pack of ravenous wolves, and we WILL see the so-called ‘War for Oil’ that leftists and liberals of all stripes claim we are already engaged in.
Those nations without an effective fighting force will align themselves with those who do, for a price, and ‘OPEC’ will stand for ‘Occupied Petroleum Exporting Colonies’.
I would suspect that we will see unified military action taken long before oil even gets close to $200 a barrel. I wouldn’t be surprised to see the navies sailing and the bombers flying at $130.
“I would suspect that we will see unified military action taken long before oil even gets close to $200 a barrel. I wouldnt be surprised to see the navies sailing and the bombers flying at $130.”
So we should steal what we can’t buy? Isn’t that why Japan bombed Pearl Harbor?
Bush could sign an executive order tomorrow that would require federal employees who's jobs don't require it to telecommute 2 days a week. In addition to that, he could ask congress to pass a law that would require companies to allow employees who are in a position to do so to do the same. That would reduce demand and lower the price long enough for us to DRILL for domestic oil.
Can you imagine if there was a Republican running for President? He could say that he will push for drilling in ANWR and Idaho oil shale, and pump it out as fast as he can til gas is back to $1.50 a gallon. I wonder if people would respond to that?
But I understand, it is more important that your friends in the New York Times applaud your decisions--and your "maverick" status.
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