Weekend Edition: Goldman Sachs Updates 2012 Oil Price Forecasts

Goldman Sachs analysts must be smoking some good stuff as the investment bank reiterated its call less than a week ago for $130 per barrel of Brent Oil and $97.5 for WTI citing tight supplies in 2012. While we stand on the edge of a default AND a recession I would have imagined forecasts calling more for like $70 oil for both WTI and Brent.

The Greek crisis continues and all the political inaction is making things worse. The European political dysfunction dwarfs whatever we saw from the US for the budget crisis. How far will they let it go before some real action is taken?

PS. I am trying out a new anti-spam plugin, if your comment doesn’t show please drop me a note.

Economic Roundup

Euro Banks Head Towards Another Meltdown

A Rough 10 Years For The Middle Class

China, Japan Say Europe Must Fix Own Debt Crisis

Preparations for Greek Default Gathering Steam

Bernanke Has Few Tools to Heal Economy

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Revisiting why I DRIP (My Own Advisor)

Centavos Model Portfolio: The market, it burnsssss ussss.. (101 Centavos)

When is a Home Purchase Considered a Smart Investment?  (My Journey to Millions)

Day Trading Using Leading Technical Indicators (Invest in the Markets)

The Safest High Dividend Yields on US Markets (Intelligent Speculator)

How to Learn DIY Investing (DIY Investor)

It Must Be Free Money Week!  (Cash Flow Mantra)

Have a great weekend!

18 comments to Weekend Edition: Goldman Sachs Updates 2012 Oil Price Forecasts

  • In the Weimar Republic the stock market experience extreme volatility. Bernanke has just decided to make the current 2.8 trillion money base a permanent fixture in the US economy and he’s decided to really stimulate the housing market in the states. We are seeing pretty interesting volatility. But with volatility comes violent up swings and down swings. We are in a down swing now. I don’t think it is going to stay down because the debauching of the US dollar is pretty much our inevitable future.

    Despite the slow economy it is not no economy, and people are still driving and putting gas in their cars. But remember, Obama shut down the Gulf oil, and there will be sudden lack of supply. Libya is unstable. Nigeria too. And there is a lot of money out there. For now it is scared. But it will come back. Just MHO.

    • Mich

      The problem PW is we might be heading towards a double wam, a default + a recession. We will be screwed both ways and it will take years to recover….

      • We have recession to be sure. But I’m betting on inflationary recession, not a deflationary one. Interest rates are going to stay at zero–stocks will recover after the fear goes away and people realize that their yield is zero. They will chase yield where they can find it. They have to. No pension fund, e.g., can meet its obligations when the fund is getting near zero yield.

        We have no stated QE3 but we do have loose monetary policy. Gold is down on increased margin requirements–but everything goes down when you do that.

        It’s true we could end up with a deflationary period like the great depression. But I think we are going to have inflation, at very least, of basic commodities. Eventually, that gives me reason to be bullish on our sector.

  • Thanks for the mention Mich.

    I look forward to your posts this week!

  • Thanks for the inclusion this week. Hope Goldman is wrong. I could use the lower gas prices.

  • sam @ goa carnival

    Great Info!!!!

    I think we can’t do any thing in that if price will hike. But this is the sign of Inflation will more increase in coming days.

  • GS is putting their mouth where their money is …literally!

  • Thanks for the mention, Mich! I think it’s going to be a cold winter, indeed, but I look forward to the spring.

  • Fascinating article from Financial Post (“Preparations for Greek Default Gathering Steam”). I kept going back to the lines about recapitalizing the European banks with cash injections from the the EFSF, the European Financial Stability Facility. I’m mildly shocked to find out that “The EFSF has an effective capacity of 440 billion euros.” Begs the question, where does the money come from? That’s a lotta moolah.

    Thanks for the mention, by the way.

  • Hey Mich,

    I just read through some of your latest post. I like your “voice”. The more I think about it, the more important I think a writer’s voice is, when it comes to grabbing attention and keeping it. Goldman smoking the good stuff is an example of what I’m talking about. Keep it up!

  • I meant to say that I read through some of your latest posts…with a “S”. Your last post was more than short enough to read the whole thing!! Actually, I shouldn’t have said anything. I just should have had you wondering instead. Take care!

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