Major investment banks are bullish on oil prices for 2012 citing a tight supply/demand situation thanks to increasing oil demand from emerging markets.
Goldman Sachs maintained its 2012 price forecast of $120 a barrel for Brent and 112.50 a barrel for WTI.
JPMorgan predicts oil prices will hit $120 a barrel by the end of 2012.
Citigroup is predicting a trading range of $100 – $120 per barrel for 2012.
Morgan Stanley forecasts oil prices will average $105 per barrel in 2012.
Societe General is predicting $110 for Brent and $103 for WTI.
I personally hope WTI oil prices top at $100 and remain in $85-$95 per barrel trading range so as not to stress the global economy. Right now I would like to see management teams use $85 WTI oil prices in their budget forecasts as they would be conservative with their numbers providing some maneuvering ground before their budgeting takes a hit if oil prices fall for an extended period of time. A surprise to the upside is always better than missing on your guidance.
Finally, with political tensions in the Middle East and the European ADD that has yet to dissipate, another wild ride a la 2011 is to be expected.
News Roundup
Oil Stocks Languish, Despite Strength in Commodity Price
Tight Oil Rises to Front of Mind
Hunt for Shale Resources Set to Go Global
Tensions rise in Gulf as key powers plan new war games
Raw Materials Seen Rebounding as Global Economy Skirts Slump: Commodities
Blog Roundup
Interview With Foster Wilson of MESA EXPLORATION (101 Centavos)
My Personal Goals for 2012 (Invest it Wisely)
Dividend Growth Index Q1 Results (My Own Advisor)
Diversification Strategy (Invest In the Markets)
Comparing Canadian stock brokers (Money Smarts Blog)
Have a Great Weekend!
