Goldman: Oil's Going Back To $150 This Year, Don't You Worry

Back when Goldman oil bull Arjun Murti said oil was going to $150, a slew of bloviators called him reckless, irresponsible, and, gasp, wrong. Oil hit $147 in mid-July and while that may not quite be $150, it’s close enough.

So now that oil is hovering around $115/barrel amid fears of global economic collapse, is the bank ready to trim its forecast? Nope.

Goldman isn’t worried about a strengthening greenback either: they’re focused on fundamentals. They expect declining trend oil supply growth and emerging market demand to continue to drive rising oil prices. Period:

Although the recent correlation in dollar and oil prices is clear, it is important to emphasise that each of these assets are driven by multiple, varying factors … Put differently, there is more to oil than the U.S. dollar and vice versa.

[There is] very little correlation between oil prices and the U.S. dollar over the longer term.

Goldman reiterates their year end oil price forecast of $149

See Also:
Goldman Oil Bull Speaks: Yes, Oil Still Going to $150-$200 A Barrel, Gas to $4-$6

Goldman Oil Bull: I’m Not A Crackpot

Goldman Oil Bull a Nutcase: Here’s Why Crash Coming Soon

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