Here we go again, the latest price forecasts for oil are out and they aren’t pretty. Goldman Sachs is predicting WTI oil at $126 per barrel and Brent Oil at $136 per barrel. How could they not be pretty when companies like Eagle Energy Trust EGL-UN.TO 8.26 [0.00] will be milking their 100% oil production into sustainable generous distributions? Well here’s the problem and we experienced it earlier this year, once oil crosses a certain threshold, the market sells off in anticipation of a recession. There is only so much the economy can handle in terms of energy costs. At $126, I believe the trade will be long physical and short stocks which means my beloved oily portfolio will be bruised again.
A lot can happen in the next 12 months, anyone want to guess how many black swan events we will see? The ground is certainly fertile for those events given the European mess and all the prevailing love in the Middle East. Until then, how about a blog roundup with a focus on giveaways as we head towards the holidays?
Invest It Wisely’s Holiday Giveaway! $300 In Prizes to be Given Away! (Invest it Wisely)
My Favourite Takeaways – Millionaire Teacher and FREE book giveaway (My Own Advisor)
Yakezie Holiday Giveaway with $500+ In Prizes (The Yakezie)
Have a Great weekend!