Goldman Forecasts `Substantially Higher Prices' for Crude in 2011, 2012

[Javaman]

http://www.bloomberg.com/news/2010-10-15/goldman-forecasts-substantially-higher-prices-for-crude-in-2011-2012.html\

Goldman Sachs Group Inc. forecasts “substantially higher prices” for oil in the second half of 2011 and 2012 as the global inventory surplus is exhausted.

“We believe that forward price levels offer good hedging opportunities for calendar 2011/2012 for consumers despite the recent rally,” Goldman analysts led by Allison Nathan and Jeffrey Currie said in a note to clients yesterday.

“We expect the supply-demand balance to continue to tighten in the fourth quarter of 2010 as continued global economic growth, albeit likely at a slower pace than in the first half, continues to strengthen demand,” the note said. “Moving into the second half of 2011 and 2012, we expect the global inventory surplus to be exhausted and OPEC spare capacity to be drawn on to balance the market, leading to substantinally higher prices.”

(that's the full story at the link)

[LiberalLoner]

1. Yup, peak oil. Wonder what will be the effect on the already depressed economy? n/t

[lib2DaBone]

2. What a load of BS from the boys that brougt us ENRON......

America's economy is dead in the water... oil storage facilities are full and overflowing... there is no room left to store oil.

This sentence says it all, “We believe that forward price levels offer good hedging opportunities for calendar 2011/2012 "

Ya.. hedgeing opportunites .. good for whom? So the blood suckers at Goldman can rake in Billions. $$$ Cha-Ching...

The only question.. will Mr. Obama continue to let the boys on Wall Street rape and pillage America?

[NickB79]

8. America is not the world, you know

Chinese and Indian oil demand is accelerating.

[Kolesar]

3. So invest in Halliburton and Schlumberger...eom

[howaboutme]

4. Goldman responsible for last oil spike

They forecast that oil would hit $150/bbl prior to the housing bubble burst, and were pushing big institutions and pensions that they advise into buying oil futures. Then the public got into the fray and it was self fulfilling prophesy while these scum bags profited. They always profit because they front run all USA policies and are in bed with the Federal Reserve. They were likely starting to short oil back when it first hit 120 knowing that the housing bubble that they were part of creating, in the process of breaking, just as they bought the insurance from AIG that taxpayers were subsequently forced to reimburse them.

In my opinion they are a reprehensible example of the back door control of what is wrong with the USA. They were the first investment bank that was secretly permitted to start speculating in commodities. Prior to that only actual users (airlines, etc) of commodities could buy futures. Goldman owns politicians and the USA.

[Kolesar]

6. that was insightful

They were the first investment bank that was secretly permitted to start speculating in commodities. Prior to that only actual users (airlines, etc) of commodities could buy futures. Goldman owns politicians and the USA.

[CanonRay]

5. Here it comes, boys and girls

Hyperinflation. That is all.

[diane in sf]

7. Looking forward to the release of the new electric and hybrid cars in 2011 from the

the auto manufacturers.

[4dsc]

9. They are not alone in this prediction

the more I read the more I keep seeing that 2012 is going to be a bad year for oil production as supply tries to keep up with demand.