While crude oil is hovering just above $89 as I write this, one prominent investment banking and securities firm predicts prices are headed higher over the next year. From Agence France-Presse earlier today:
Oil prices will likely rise to about $130 a barrel in the next 12 months as demand in emerging markets such as China and India make up for weak developed world growth, Goldman Sachs said Thursday…
Brent crude, which is traded in London, is expected to hit $130 a barrel in the next year, from current levels around $112, the bank said.
West Texas Intermediate (WTI) light sweet crude oil, traded on the New York Mercantile Exchange, is forecast to reach $126.50 a barrel over the same period from current $88.
The AFP highlighted Goldman’s forecast for a significant disparity in growth among the developed and developing economies. From the article:
The large emerging economies of the BRICS — Brazil, Russia, India, China and South Africa — are forecast to grow 7.7 percent this year and 7.9 percent in 2012.
By contrast, advanced economies are projected to expand only 1.7 percent this year and 2.1 percent next year, Goldman Sachs said.
At the end of last year, Goldman Sachs predicted the price of WTI light sweet crude oil would reach $100 by the middle of the year, and $105 by the end of 2011. WTI crude reached $101.95 by the second week of June before pulling back.
Will their end-of-the-year forecast also be realized? If so, what effect will energy prices at this level have on the stumbling U.S. recovery?
“Goldman Sachs tips oil to hit $130 in 12 months.” Agence France-Presse. 15 Sep. 2011. (http://www.google.com/hostednews/afp/article/ALeqM5gQoL8dSpwvRmfU0tqNDVBx1tfQTA?
docId=CNG.845572e84348f2e5c01e7818573012ea.11). 15 Sep. 2011.
No comments yet.
Leave a comment
Christopher E. Hill, Editor
11,976 Visits in June
454,328 Visits from
Please Rate this Blog HERE
- Final Vote Next Tuesday On Niles, Illinois, Gun Store And Range
- Does Robert Shiller See ‘Froth’ In U.S. Housing And Stocks?
- USGS Updates National Seismic Hazard Maps
- Downtown Chicago Could Receive Resilient Electric Grid
- Peter Schiff On Gold: ‘We’re Going To Have A Big Rally Probably Beginning Here In The Second Half Of 2014’
- Detroit Police Chief: ‘Good Detroiters Are Armed And Will Use That Weapon’
- Chicago Train Passengers Robbed At Gunpoint
- Jim Rogers: Some Currencies, Real Assets Could Shine When Coming Bust Arrives
- Illinois Governor Pushes Ban On ‘Assault Weapons,’ ‘High-Capacity’ Ammo Magazines
- Chicago’s Gun ‘Control’ Fetish Costing City Big Bucks
- Editor on 82 Shot, 14 Killed In Chicago Over Long July 4 Weekend
- Derek @ MoneyAhoy.com on 82 Shot, 14 Killed In Chicago Over Long July 4 Weekend
- Editor on Dick Cheney Warns Of Massive Terrorist Attack On U.S. Before Decade Is Out
- tj & the bear on Dick Cheney Warns Of Massive Terrorist Attack On U.S. Before Decade Is Out
- Editor on U.S. Senator Michelle Obama (D-IL)?
- Bill Taylor on U.S. Senator Michelle Obama (D-IL)?
- Not Prepared: 17 Signs That Most Americans Will Be Wiped Out By The Coming Economic Collapse | All Self-Sustained on The Percentage Of Adult Americans That Own Investment Gold Is…
- Editor on Deadly MERS Virus Lands In Chicago, Discovered In Indiana
- Editor on Video: SHTF In Venezuela
- tj & the bear on Deadly MERS Virus Lands In Chicago, Discovered In Indiana