Posted on 08/06/2009 8:02:49 PM PDT by FromLori
Goldman Sachs is once again warning the world of a coming spike in oil prices that will remind everyone of 2008.
The current financial crisis is to blame. While we focus on fixing the banking sector, we've forgotten that there are fundamental problems with the commodites markets.
The spike from 2008 will return because there's been "decades" of poor investment decisions by oil producers.
When the economy kicks into gear around the world, supply shortages will become problematic, and the price of oil will spike. Says Goldman via Alphaville, "As the commodity markets rebound with the broader global economy we expect a redux of 2008 when severe supply constraints forced the rationing of demand through sharply higher prices to keep the markets balanced."
Apparently, Goldman Sachs didn't get the memo. We're going to chase the speculators out of the market, so none of this will be a problem.
(Excerpt) Read more at businessinsider.com ...
So now Goldman is going to rig this game, too. Jesus...
They have been rigging it for quite sometime, fyi.
The almighty government should start approving applications for the construction of oil refineries IMMEDIATELY!
Price manipulation from the masters of the universe. Too bad the police won’t stop them because they own our governent.
Goldman is SO corrupt.
Amen! I hope the CFTC or whatever, hands them their head on a platter.
On the news tonite, I heard there will be a $1,000,000 fine per day per occurrence, of oil producers putting out false stories to bump the price one way or another.
parsy.
Experts: Expect the Worst for the Economy
Is the U.S. economy now in the eye of a hurricane about to be hit again with still fiercer winds? Another humongous credit crunch and major social dislocations are predicted as millions of jobs fail to come back.
Two major entrepreneurial tycoons, in the multibillion-dollar league, with worldwide interests, speaking anonymously, agree that the worst is yet to come.
America has to reinvent itself for the 21st century, but this won't happen before another big credit-rattling shock. Millions of jobs are not coming back, they said.
[snip]
They should know since they are so good at rigging the game of hedging.
when oil was 147 goldman said it was going to 250
Demand won’t be the only thing that pushes oil prices up. The other will be the devaluation of the dollar as we print trillions of dollars.
GS loves to pimp the market like this. It could very well happen, but if it does, you can kiss the economic recovery goodbye.
The same thing happened last year. Oil ran up to $147 in the first half of the year, and the economy tanked in the second half. People and businesses can’t afford $4-5 gas. It’s that simple.
Of course GS and the other market makers make money when it goes up, and also when it goes down by shorting. It’s all a big game. They don’t care how much it hurts the economy, or people. Learn to play the game, or you will get taken every time.
http://www.marketoracle.co.uk/Article2635.html
http://www.opensecrets.org/news/2008/06/big-donor-goldman-sachs-turns.html
http://www.opensecrets.org/orgs/summary.asp?ID=D000000085
It will obviously go up, most likely do to overall higher energy prices from taxes and other reasons. However to what is was before not likely due to demand not being there since the economy will not be what it was.
Bank Of England Signals Recovery Is Far From Assured As It Prints £50bn More
The Bank of England has signalled it believes a robust recovery is far from assured by expanding its radical programme to inject money into the ailing economy.
[snip]
Do not forget the falling US production as the rats erect additional barriers to energy development. When the prices rise again, the economic carnage will be ugly.
You are correct, the cost of all energy will increase as the dollar loses value.
That’s what you get when you dump $7+ trillion into the economy... eventually inflation goes NUTS.
And, it will happen.
“Demand won’t be the only thing that pushes oil prices up”
Goldman talking about demand as if end users of the product are the major drivers of price swings is something since they know what drove the big oil price swing—and of all futures trades commodities—they and their kind parking money in the commodities markets.
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