Goldman Says `Take Profits' After Crude Hit Record

Discussion in 'Commodity Futures' started by ASusilovic, Oct 30, 2007.

  1. Goldman Sachs Group Inc., the bank that said in July oil may reach $95 a barrel, told clients it was ``time to take profits'' after crude rose to a record $93.80 in New York yesterday.

    ``We are now more cautious on the near-term upside potential for oil prices,'' analysts including Jeffrey Currie in London said in the bank's Energy Weekly today. ``We are not trying to call a top here, just take profits.''

    Goldman said it was closing its long positions in New York oil futures. Oil has gained 51 percent this year as hedge funds and other large speculators increased bets on rising prices. Net-long positions in New York crude futures in the week ended Aug. 3 jumped to the highest in more than a decade.

    ``The downside risks we have embedded in our end of first quarter 2008 oil price target of $80 a barrel are beginning to gain momentum,'' the report said. ``These include increasing exports, a slowing U.S. economy, an adequate level of heating oil inventories.''

    Crude oil for December delivery fell $1.30, or 1.4 percent, to $92.23 a barrel at 10:17 a.m. on the New York Mercantile Exchange.

    The increase in crude supplies will partly come from the Greater Plutonio oil field in Angola and the Genghis Khan field in the U.S. Gulf of Mexico, which both started this month and will likely ramp up production during the next few weeks, Goldman said.

    ``The strength in freight rates from West Africa to the U.S. Gulf Coast suggests that U.S. refineries may be preparing to receive more of the new Angolan low-sulfur medium grade Plutonio,'' the report said.

    That´s really a "friendly neighbourhood" hint from GS, isn´t it ? :D :D :D
  2. Translation GS wording -> English: "We're short Crude Oil to the hilt"
  3. And it´s better to be with us, because Hank is watching the situation from Washington! " Ha, ha, ha...
  4. This comment may mitigate news from tomorrows meet.
  5. Buy OIH puts then...BIG time!
  6. Translation - you the idiot retailers SELL it, and we'll gladly buy it from you because it's going to 108...
  7. Lets suppose GS has indepth analysis about the oil trend

    Why would they reveal it to retail investors?

    Either they are already short and want you to sell so they profit.

    Maybe it will go up further, they want to buy what you dump, so they profit.

    In both scenarios they profit, you miss opportunities. :mad:
  8. What does Eric Bolling say? Really miss that guy on Fast Money. That woman has little useful to say, although i do give her credit for a good call to stay away from the PE IPOs. Najarian and Adami seldom have anything useful to say either. Basically the show has gone downhill and should only be a half hour.
  9. GS has plenty of insight into oil but you'll never see it released to clients as the rubbish research they publish comes from their fixed income and equity groups, not J Aron. Same goes for the 99% of all sell-side research.
  10. The pit guys have become dinosaurs, take a look at how much volume is done on Globex these days vs. the pit. They're even starting to lose the volume in short dated options to the screen. As soon as you can trade outright option spreads on the screen the floor is done.
    #10     Oct 30, 2007