'That was a pretty big call by them and the market is just assessing where supply and demand really sits,' said David de Garis, senior economist at ANZ Investment Bank in Melbourne."
Recap: Top oil trader Goldman Sachs speculates $105 (largest stake will benefit company in claiming speculation). Market is unsure (no hard facts to back up GS claim) nevertheless raises futures prices based on GS' report. Spot markets react to futures market. Gasoline prices rise based on artificial report on a futures market. Common person sees prices rise without knowing the facts behind the hikes.
What a scam.
what it all translates into is that this summer is going to suck for those that have to drive.....
I wonder what the economy will look like in September.....
It's absolutely disgusting, this profiteering. They clearly invested in oil futures before they made their hysterical prediction, with the aim of cashing in on the rise that would result from the prediction itself.
There very well may be good money to be made by betting on this price spike to evaporate - wait 'till hit hits an apparent high then short it like mad.
I disagree that it's a 'scam'. GS is basically looking at how high oil and gas prices went as a consequence of oil market disruptions in the early 80's. As a percentage of GDP we have a way to go to reach that previous price spike. The early 80's gas prices encouraged consumers into more more conservation conscious decisions, which is what helped bring prices back down. Whether gas prices spike to the same percentage of GDP as they did in the early 80's is obviously speculation, but that's the foundation for the market price ceiling they're predicting.
Fuggetabout Goldman Sucks! Watch it to come down and relax.
$100 Oil My Foot
http://www.freerepublic.com/focus/f-news/1376042/posts
Here they go again!!! Wrecking the first quarter wasn't enough for these bad news bears, they are now blowing another blinding blizzard of BS into the second quarter start!!!
Thought you all would have an interest or opinion-ping.