6 May 2008
$122 and Rising
Posted by Joy Bischoff under: World Economy .
I bookmarked this article from Bloomberg last night but hesitated to post it. Even I have my days I’d rather bury my head in the sand but Peter Anderson sent it to me this morning so I decided to post the darn thing. I guess it is a good thing my friends hollar down to me when my ears are filled with sand.
Goldman’s Murti Says Oil `Likely’ to Reach $150-$200 (Update5)
By Nesa Subrahmaniyan
May 6 (Bloomberg) — Crude oil may rise to between $150 and $200 a barrel within two years as growth in supply fails to keep pace with increased demand from developing nations, Goldman Sachs Group Inc. analysts led by Arjun N. Murti said in a report.
New York-based Murti first wrote of a “super spike” in March 2005, when he said oil prices could range between $50 and $105 a barrel through 2009. The price of crude traded in New York averaged $56.71 in 2005, $66.23 in 2006 and $72.36 in 2007. Oil rose to an intraday record of $122.49 today on speculation demand will rise during the peak U.S. summer driving season.
“The possibility of $150-$200 per barrel seems increasingly likely over the next six-24 months, though predicting the ultimate peak in oil prices as well as the remaining duration of the upcycle remains a major uncertainty,” the Goldman analysts wrote in the report dated May 5.
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7 Comments so far...
Concerned American Says:
6 May 2008 at 11:56 am.
Bernanke was with Goldmans before becoming head of the fed. I’m surprised that Goldmans put this out when they are trying to keep the stock market calm.
Matt Says:
6 May 2008 at 12:02 pm.
Hard to bury the head in the sand when it is headlines on Drudge.
Oil passes $122 on $200 oil prediction, supply concerns
NEW YORK (AP) – Oil futures blasted to a new record over $122 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.
A new Goldman Sachs prediction that oil prices could rise to $150 to $200 within two years seemed to motivate much of Tuesday’s buying, although a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed, analysts say.
http://www.breitbart.com/article.php?id=D90G7PV01&show_article=1
E.E. Says:
6 May 2008 at 2:02 pm.
We are seriously talking about getting a very high mileage car and also getting our old bikes fixed. Small trips to store and church and especially the kids to their friends can switch to bikes. Everything helps.
E.E. Says:
6 May 2008 at 2:06 pm.
and it keeps on climbing, i wouldn’t have believed this a few months ago
NEW YORK (AP) — Oil futures blasted to a new record near $123 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.
avatar Says:
6 May 2008 at 2:26 pm.
Good for Texan oilmen and Bush’s Saudi friends but not for most ordinary Americans. I guess we’ll soon know, but if past history is any guide, we’re probably in for a severe recession, as a result. I just hope that this time around, we get some viable energy alternatives to oil out of the situation.
I paid almost $80 to fill my sedan with gas the other day–a new record. I’ve actually been thinking about taking buses to work, which would take an hour+ instead of the twenty minutes driving. At least I have that option, unlike many Americans.
tony Says:
6 May 2008 at 2:48 pm.
i personaly love to ride my bike wherever i go then pay that much for gas and as a plus i stay in shape 
Jesse Says:
6 May 2008 at 3:20 pm.
Good for you Tony.
Avatar, from what I have heard and read about sea water as a fuel source, it wouldn’t take very long to get that up and running. The technology is here already for that. Talk about clean energy!
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