Sunday, October 12, 2008

Goldman Sachs lowers oil target to $70!

Where did they get that revelation? Because oil was trading at $77? Or because gasoline at it's largest price drop ever?

NEW YORK, Oct 12 (Reuters) - The average price of a gallon of gasoline in the United States recorded its largest drop ever as consumer demand continued to wane and oil prices slid, a prominent industry analyst said on Sunday.

Here's the story on Goldman's downgraded forecast:

Oct. 13 (Bloomberg) -- Goldman Sachs Group Inc., the biggest independent Wall Street firm, lowered its price forecasts for crude oil after underestimating the depth of the global financial crisis.

Goldman reduced its estimate for the U.S. benchmark West Texas Intermediate crude for the fourth quarter to $75 a barrel from $110, and cut its year-end target to $70 a barrel from $115, Goldman's research analysts led by Jeffrey Currie and Giovanni Serio said in a report tod

But the part of the story you will miss is the damage that Goldman Sachs caused by touting $147 oil, and convincing firms to buy oil at these higher levels. Here's the story on Goldman's nonsense call on oil two months ago. It's worth a read again.

$147 oil? Now that oil is at $77 they think it's safe to lower their target price to 70? What planet are these guys on?

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