A most volatile year
It was only a few months ago that Goldman Sachs predicted oil prices to average $141 during the second half of this year. Now the firm says that prices could touch $50 in the next couple of months. How things have changed:
Goldman Sachs said the financial crisis had already done more damage than it expected to commodity demand and warned that a slide to $50 a barrel for oil could be possible…The bank cut its year-end U.S. crude oil target to $70 a barrel, down from a previous forecast of $115 a barrel, and slashed its average 2009 forecast by a third…
And JP Morgan is on the same bandwagon. WSJ:
Crude-oil futures tumbled near $75 a barrel, bringing prices to levels last seen more than 13 months ago. Gasoline futures also tumbled. J.P. Morgan became the latest Wall Street firm to aggressively ratchet down its oil-price forecast. The bank said it now sees crude averaging $74.75 in 2009. And — in contrast with most government forecasts — J.P. Morgan said it sees global demand shrinking next year.
All of this brings to mind the Sports Illustrated moment in the WSJ in July: “Oil’s historic ascent from $100 to nearly $150 a barrel in just six months is lending weight to a far grimmer prediction: Crude could reach $200 a barrel by the end of the year.” Was July really only a few months ago?
October 16th, 2008 at 5:59 am
I would rather shovel the manure of a team of Clydesdales at the local parade than the manure of these clowns. Do they really expect any real people to believe their dross spew?
Mark
October 16th, 2008 at 5:53 pm
Jim Cramer is so bad he’s being touted as a contrarian. Doesn’t anybody pay attention at all to the track record of these pundits and prophets?
Does anyone use his brain anymore? If oil were $10,000 a barrel, none would be sold. People would walk to work, if there were any work. These trends are unsustainable. They always end, and the same guy who predicted $200 oil will predict $40 oil. That’s their job. What’s amazing to me is how people will still listen to them. This time it won’t be any different.
October 16th, 2008 at 8:33 pm
These experts are investing billions, no matter how wrong they are.