Goldman predicts oil at $45
 
Submitted by sridevi on Sat, 04/25/2009 - 11:10

21 April, 2009

Goldman Sachs Group Inc. analysts forecast oil prices will decline to $45 a barrel due to weak demand and increasing inventories before recovering to $65 by the end of the year.

The commodity research analysts said for the “near term” they advise selling West Texas Intermediate crude oil futures for July delivery on the New York Mercantile Exchange. Goldman analysts David Greely in New York and Jeffrey Currie in London said in a report dated April 17, “this weakness is being driven by deteriorating oil demand.” “In the U.S., oil demand has fallen to its lowest level since October of last year, while implied oil demand in China and the non-OECD countries fell back to 2007 levels in February.”

Demand and prices for crude oil may stabilize in the second half only if the global economic contraction slows and OPEC continues to restrict output, said BP Plc Chief Economist Christof Ruehl.

»
Quick Links
 
Glossary
 
Bear market
Bear market represents widespread decline in security prices. Bears (investors) believe that share prices will fall. They sell securities which they do not own at present, in the hope that they can buy them at a lower price later once the price has fallen.
view all
Famous Quotes
 
The basic prescription for preventing deflation is straightforward, at least in principle: Use monetary and fiscal policy as needed to support aggregate spending, in a manner as nearly consistent as possible with full utilization of economic resources and low and stable inflation. In other words, the best way to get out of trouble is not to get into it in the first place.
-Ben Bernanke
view all