Joined: Sun Oct 17, 2004 2:01 pm Posts: 504 Location: Hoboken, NJ Gender: Male
Excerpts from a Goldman Sachs Report on Oil & Gas:
Super spike period may be upon us: Sector attractive. We believe oil markets may have entered the early stages of a "super spike" period, which we now think can drive oil prices toward $105/bbl. We see as much as 80% upside to super-spike
peak values and reiterate our Attractive coverage view.
Raising 2005/2006 WTI oil price forecasts to $50/$55 from $41/$40 Our higher forecasts are driven by the combination of resilient oil demand growth, a growing premium for "light-sweet" crude like WTI relative to "heavy-sour" grades, and further sharp increases to the industry cost structure.
Raising "super spike" range to $50-$105 per bbl from $50-$80 per bbl Our upwardly revised "super spike" range assumes US gasoline prices rise to a level of gasoline spending relative to the US economy that is still below the heights reached in 1980-1981, suggesting our new range could prove conservative, especially if there is a supply disruption in a major oil exporting country.
_________________ "My brain is like an iPod without earphones" - Mr Vedder
Joined: Sat Oct 16, 2004 10:52 pm Posts: 1727 Location: Earth Gender: Male
Peak oil's a bitch.
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