Goldman Sachs predicts $105 crude

Discussion in 'Commodity Futures' started by DonCorleone, Mar 31, 2005.

  1. I was just thinking about starting this exact thread ... :D

    My take on it is they got caught with their pants down and need to cover some positions.

    The volume is light so I do not expect much from this move and doubt it will do much but consolidate for a while still but the end of the day will tell a better story as far as the charts go.
     
  2. cable

    cable

    When the pros speak, the sheep listen -- especially if the sheep are already living in fear of higher oil prices. The economy is so shaky that it's at the edge of the cliff and Goldman may just be giving it a Nietzschean push. But as always, fundamentals, not one group's opinion, will decide price over the long term. Best thing to do is embrace the volatility caused by the confusion and hop on any short-term trends that may arise.
     
  3. 105 this is a joke...maybe in 8-10 years. they've been shoveling a lot of money into their energy business lately. they're talking up their hand.
     
  4. I can remember Goldman giving some real bummer target (something like $10000 when it was around $500) for Softbank Corp., at the end of 2000. About 3 Months later it imploded.

    Anyway, a reasonable start is to assume oil will continue to go higher, but not yet to $100. In ten, twenty years, ok.

    I don't want now to use the word "scam" here. But some might...
     
  5. gee i wonder who's long...
     
  6. Bullet

    Bullet

    well, everyone thinks GSCO is out to lunch....but who cares! If you are a trader all you need is volatility, and GSCO is helping to provide it. Long live any firm that provides us volatility
     
  7. Very Interesting...

    The big brokerages have to make it big in some category that is hot for them...

    Stock related revenues
    Bond trading revenues
    Investment Banking
    Short/Long trading
    Commodities

    Bond trading..the somewhat hidden commissions...more controlled pricing...less scrutiny than stocks...the huge movement in values given small rate changes all added up for this area to be the big breadwinner in the recent big house cycle....so now it will be commodities...particularly oil...

    This is something that they can do and will do because they can do it...just as their better influences in the bond markets....

    Unfortunately the poor will be far more miserable for this type of greediness.....Energy is far more personal on a daily basis....

    I suspect without them in the game... oil prices would be far cheaper...and less volatile.....
     
  8. Everest

    Everest

    God I hope it is. Costs me a fortune just to heat the house, and that's getting everyone to wear jumpers!
     
  9. Sam123

    Sam123 Guest

    If a report comes out in the near future about some huge and unexpected energy reserve discovery, or some new technology that extracts hard-to-get oil at a fraction of the cost, most people will forget what Goldman said and when they said it, as they watch the price of crude drop like a rock.
     
    #10     Mar 31, 2005