Dr Copper
Posted on 09/11/2015 6:15:39 AM PDT by blam
Mike Bird
September 11, 2015
Oil prices have been on a roller-coaster ride over the past year. West Texas Intermediate (WTI) oil tumbled late in 2014 from over $100 (£64.78) a barrel to just around $45 a barrel early this year.
After a recovery back to around $60 a barrel during the early summer, prices have gone through the floor again, down to $45.12 on Friday.
But oil could go even lower.
The price of a barrel of oil could go to just $20 soon, according to Goldman Sachs analysts led by global commodities research chief Jeffrey Currie.
There's a huge surplus of oil in the world, stemming from both buoyant supply and weaker demand, and that could leave prices at levels not seen in decades. Here's a snippet from Goldman's latest note on oil:
The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016 on further OPEC production growth, resilient non-OPEC supply and slowing demand growth, with risks skewed to even weaker demand given China's slowdown and its negative EM feedback loop ... While not our base case, the potential for oil prices to fall to such levels, which we estimate near $20/bbl, is becoming greater as storage continues to fill.
(snip)
(Excerpt) Read more at businessinsider.com ...
Dr Copper
And gasoline will remain at $2.50...
>> But oil could go even lower.
Of course it could.
Or it could stay about the same. Or go higher.
In general, whatever Goldman makes sweeping predictions about, BET THE OPPOSITE of it, like they are...
If we are lucky.
I have a set of these knives that Shell used to give away for filling up your 60's gas hog.
Sounds like Goldman is trying to drive down the futures price by talking it down. My guess is they are planning on bidding out a billion barrels at that price and then when it goes back up to $100 a barrel they can call it in.
I’m counting on this, actually...
The only explanation that makes sense is that ALL the financial Markets from stock to bonds to commodities are disconnected from reality now.
Does that mean manipulation? Probably... It's all run through 'puters now and thus very easy to manipulate but it would mean those in charge of the computers are running the game and that would mean LOTS of people must know or at the very least know that all is not kosher...
Saudis declaring oil war on iran, russia.
More money in the consumer’s pocket, lower transportation costs, good for economy - yeah!!!
$2.05 where I filled up this morning in Virginia Beach.
You are a genius!!! lol
Well, I was exaggerating a bit. It’s $2.37 where I am.
The surprise is the recent decline in the price of diesel.
They can’t afford to anymore. They’re going broke.
You’re thinking small and not realizing how much this impacts jobs and recovery.
I love that word plunging ,,,, My wife has a dress with a plunging neck line and I love them two ,,,, I’m sorry I mean I love it Too .
Like Boone Pickens they are talking their book. In house they are short oil.
I would love to see $2.50 California gasoline.
Bye-bye OPEC.
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