Goldman Sachs predicts fall in oil prices to $45 a barrel

Julia Kollewe
London Guardian
Friday, December 12, 2008

Goldman Sachs has slashed its forecast for crude oil prices to just $45 a barrel next year as demand wanes – in a sharp U-turn from its prediction of a spike to $200 made earlier this year.

In May, the investment bank’s energy equity team led by Arjun Murti made headlines when it predicted oil could rise to $150 to $200 a barrel within two years. Oil prices peaked at $147 a barrel in July and have fallen sharply since then as a rapidly deepening global economic downturn reduced demand for energy.

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The team, which also made waves in 2005 by calling crude’s rise to $100, cut its 2009 forecast to an average price of $45 a barrel. The analysts also think prices will bottom out early next year and that a shift from “demand destruction” to “supply destruction” will reignite the oil rally before long.

Murti’s team predicted a return to positive demand growth and shrinking non-Opec supply would lift prices to $70 a barrel by 2010 and to $105 by 2012.

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5 Responses to “Goldman Sachs predicts fall in oil prices to $45 a barrel”

1. Civil Says:
   December 12th, 2008 at 1:05 pm

   Let’s be glad these guys know what they are doing !

2. dRapNOid Says:
   December 12th, 2008 at 3:43 pm

   Who gives a flying FUCK what they think.

3. Alex (not Jones) Says:
   December 12th, 2008 at 4:47 pm

   Ah yes Goldman [there is no recession everything is fine and the economy is in the best shape ever] Sachs? I’d listen to them for sure!

4. BALLS Says:
   December 12th, 2008 at 5:57 pm

   Goldman WHO ?? Didn’t they go belly up ? Goes to show you how stupid they consider us to be . They think , and unfortunately are pretty right , we already forgot . That we will listen to their advice and give them what little money we have left as an investment in the “MARKET” .
   Also , why do they need our cash ? They already got a large portion of our future with the undisclosed amount they surely got from TARP .
   Fuck Them !!

5. 9/11 Says:
   December 13th, 2008 at 6:44 pm

   Bought oil recently and holding long term. even if it takes two years to reach $80 which I doubt.
   The bank is offering nowhere near that return for deposits.
   No brainer!!!
   Low risk capital defense stratergy at current price.