Didn't Goldman do the same "Super Spike" headline back in june 06 just before the market had a pull back......
Goldman pulled the same shit with gold when it hit $1050 they proffered a "Gold is going to $2000" statement. Selling their holdings to the lemmings that bought their line. What happened to gold immediately following????
Yawwwn, Putting ones head in the sand isn't wise. To not pay attention to facts is just flat out stupid. Oil was at 16. or so in 2001. It touched 123 today. Oil in the next decade alone should blow past 150 easy. The simple facts, SPECULATORS do not controll enough % compared to the "GROWTH" of CHINA and INDIA, SUPPLY AND DEMAND, and the US CONSUMERS love for the SUV to run oil this high. The hedging of the US is in OIL as the dollar sinks, but that is not speculation. That is 'Flight to Quality", which will not stop as the FED brings rates to 1%. The consumer is FUCKED if he/she does not make well over 100k a year. Good bye middle class. The Stock Market seems to be setting up for a serious move down, as the weight of the weak dollar, Higher Energy Prices, Weak Consumer, Housing and Financial Lending that has been tightened. We are well into a recession but the US GOV wants you to belive growth is .6% GDP. From 3% to .6....? Hummmm. The numbers will be revised long after the Recession ends, im sure. Nice little trick the "GAO", Feds, Etc use. Even if the US heads to a long deflationary presents or Long and drawn out Recession, OIL is going higher. Emerging markets have taken lead on US oil consumption. MICROSOFT just announced a huge Plant in China. Think about how many US companies are going "GLOBAL" and moving out of the United States. There is going to be a huge shift in "Players" and "Wealth". Those that are in OIL will continue to top the Forbes list, those that own companies which tap into the Global Market Place will continue to make a shit load of money. The rest, will be left behind. It is that simple.
It comes down to how Americans handle energy. I just bought compact fluorescent light bulbs. I did not put them in my high tops though but I did use them in everything else. Hey itâs a baby step. I think we need higher fuel cost before it really hits home. I would like to think overtime people will buy smaller cars and find closer jobs. We are now in the process of learning this lesson.
I would have been willing to give GS the benefit of the doubt on their analysis on Oil, until they pushed that line about applauding the speculators, that they are good for getting people to think more about conservation energy investment. That`s the same argument that the guy who put anathrax in the us mail probably used, and that`s called terrorism. As nobody else could have pulled off what he did, except very sophisticated governmental scientists-----not some run of the mill plane hijackers.......pure and simple GS talking their own book!!!!!!!!!!!!!!!!!! But he who has the Gold makes the Rules----unless a larger power can force the player to submit to their rules. And the government has let GS run wild on WS for 20 years, except for that slap on the wrist from Henry Blodget`s mess!
The list of things made from oil, and transported by oil based fuels is much longer than anybody would like to know about, fertilizers are made from oil, clothing, plastics, etc.......
Blah Blah Blah Blah Blah. Oil consumption is growing at 3% a year. The USD has only fallen 15% during the same time that crude has risen 50%. Anyone want to dispute those facts? This run up in crude is speculation, pure and simple. There is no fundamental support for these prices. Everything will revert to the mean given enough time. Decide when you want to pull those speculative chips off the table and pocket them - just hope you get out in time, because the fall will happen violently and may impose severe losses on the untimely.
Agree... seems like they want to distribute and sell out some of their large positions as much as they can...
Look at this chart... I totally agree that other factors aside the laws of supply and demand are in play. The spike in crude oil prices since 2002 certainly does not coorelate with the growing demand from developing giants such as China, India and Brazil. Speculation seems the logical answer. This bubble has to burst.