Oil Analysts Keep Lowering Predictions

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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s