Goldman Sachs said that they expect Brent Crude can touch $140 by the end of next year. They said that loss of Libyan Crude Oil production and disappointing production from non OPEC countries will continue to tighten the Oil market. They are not seeing much hope from inventories and spare capacity, so ultimately price will increase to restrain demands.
I feel that they are just working for some ……. to hike the price of Oil. As we all know that during last few months world is watching the horrible movements of Oil. Now what is the effect of this rise in Oil, it just increases the inflation figures of many countries. Though ultimately it effects general people and the Stock market. I think that …… expected some more corrections in the Stock exchanges around the world especially in the Emerging economies during this period through Oil lead inflation fever. Since corrections in the Stock markets was not according their wishes so they are again trying to create panic so that new round of corrections can come in the markets and they can take positions.
Now some of you may be asking me that why I am thinking like this ? Look what world is facing now, never ending debt problem in Europe, slowing
US economy and now is also into the radar of slowing growth. We are also getting some news that some of the Emerging countries are going to take some strong steps to control this Oil and food lead inflation. So in this environment how some ….. can take this type of aggressive prediction. What I think that they ( or any of their big clients ) must have some big investment in this sector so they are just trying to liquidate it as soon as possible. China
Charts of the Crude are showing that it is in bearish pattern, but their thinking was quite different from others. Whenever I see this type of predictions and ratings, I thought about the Sub-Prime market. Where were these …., during that period ?
I do not know whether any Government will take any step against this ………, some action must come against them. Until it will be better for us to depend on charts and tell your vehicles to eat less Oil.
NOTE : Please see the disclaimer below this blog.