Goldman's revision
Goldman Sachs has slashed its average price forecast for West Texas Intermediate crude for 2009 to $45 a barrel, down from $80 a barrel previously. This stands in stark contrast to Goldman's prediction earlier this year that oil prices may hit $200 a barrel.
Goldman also lowered its three-month oil price target, to $30 a barrel, as well as its six-month target, to $42, and its 12-month target, to $65.
"The collapse in world oil demand in the fourth quarter of 2008 as the global credit crunch intensified now threatens to push oil prices below $40 a barrel in the near term, as the impact of the global economic recession has swung the oil market from pricing demand destruction in 2008 to pricing supply destruction in 2009," the commodities research team at Goldman Sachs led by Jeffrey Currie said in a report dated Thursday.
The Goldman analysts expect oil demand to decline by 1.7 million barrels a day in 2009.
In addition, they said that an additional 2 million barrels a day of OPEC supply cuts will be required in 2009, along with a reduction of 600,000 barrels a day in non-OPEC production, in order to rebalance supply and demand in the oil market. End of Story
Friday, December 12, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment