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 ...
1.) Absolutely.”
Right, the whole world lives for the good of the USA. And if we can't we should start killing people who don't give us what we are not willing to pay for. That is immoral, and I would say that makes you immoral.
If we do that, the whole world will line up against us.
I thought that was the Germans?
“Isn’t that why Japan bombed Pearl Harbor?
I thought that was the Germans?”
Germans? Forget it he’s rolling.
Goldman is giving the rest of us 15 minutes notice.
I think the point is, if oil skyrocketed enough, a significant portion of the world would line up alongside us.
But I'd bet against $200 oil anytime soon, whatever GS says.
And stop burning our *food* for energy!!
It might also be a matter of a shrinking dollar. They seem to be saying that it might “spike” to $200. That suggests a hyperbolic upmove and a quick drop, the way gold behaved in 1980.
Well, Bernacki is increasing the amount of money in circulation by 25% a year so I'd say we will be there in a minimum of 4 years.
More like they have positioned themselves to benefit from a market jump caused by causing more uncertainty in the oil market.
It was ours to begin with. Who do you think explored, drilled and produced oil out of the Middle East? It certainly wasn't those Muslim simpletons.
If not for our efforts 80 years ago, those camel-jocks would still be wandering the sands.
We should take it back.
Thanks for weighing in , Senator Obama.
Now THAT has a nice ring to it. A REALLY nice ring.
We are a paper tiger to take this, we have leverage in many ways, just exercise them.
But Bush won't be able to help his "oil buddies make obscene profits" after 2009. What will liberals blame high prices on?
Indeed - Greater East-Asian Co-Prosperity Sphere
But it did not work
Maybe this time ???
If the price goes high enough, not only will we be drilling in ANWAR, but also off the coast of Florida and California.
If the government would do what they actually CAN do, like imposing sanctions that really have an impact on them as much as the out of control oil price has on us, we would be laughing at them now.
It could be, partly, because indications are that a terrorist attack is imminent.
I have read / heard that the high oil prices are all due to speculation.
It's actually the cost of "oil futures" that is going up, as the prices we are seeing is what the stock market is actually paying for oil that isn't even out of the ground yet.
I notice some posters conjecturing that the problem may be solved by military action.
Only a political neophyte would make a move like that.
More likely, the FTC will ban all trading in oil futures, and end all speculation on the market.
Goldman Sachs and others could find themselves eating big losses if the FTC gets involved.
So it seems who will be whacked all depends on who has the bigger lobbying power, OPEC or Wall St.:-)
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