Some of the prominent Oil bulls have been continuing to lower their predictions on price.
Just a month ago, Goldman’s commodity analysts predicted crude oil would average $148 a barrel next year. On Sept. 16, they trimmed that forecast to $123. On Monday, they slashed it to $86 a barrel.
Crude-oil futures have declined 44% from their record high in July as demand slumps and the financial crisis suggests it will fall further. Light, sweet crude for November delivery settled $3.49, or 4.5%, higher at $81.19 a barrel on the New York Mercantile Exchange on Monday on the back of a large bounce in the Dow Jones Industrial Average after last week’s rout.
….Separately, a closely watched Goldman stock analyst who covers the oil industry, Arjun Murti, cut his 2009 price forecast to $75 a barrel. This is $35 lower than his previous outlook and $65 less than what he said at the start of September.
Lower oil prices may be related to economic problems, but they lower the cost of flying and make it easier for airlines to get to Vegas and, just as importantly, drivers to get to Vegas.