Why wouldn't they? They're stuffed with it!
Remember when Goldman was downgrading oil? In the 30's? Now they are touting it?
They just lifted their target for crude to $75 from $52.
$85 possibly by the end of 2009, and prices could hit $100 by 2010.
Why the target increase? Why not? Isn't oil higher, and didn't Goldman get it's oil position? Didn't they lease tankers in January to store oil when it was $40, while they were downgrading the price?
Remember that? I'll let the FT speak for Goldman.
The bank’s previous forecast was for oil prices to drop to $45 a barrel in the short-term, a projection that Goldman Sachs said it was now “omitting”.
Goldman had warned earlier this year that oil prices could drop as low as $25 a barrel because of the economic crisis, a view that has proved too pessimistic.And didn't JPM just hire an oil tanker, Front Queen to store 2 million barrels oil? I thought that the only one that was fronting Queen was Adam Lambert!
And isn't Morgan Stanley doing the same thing? And doesn't anyone find that peculiar, especially when their target for crude was $35? Why else did I say this on March 27:
When will Morgan Stanley's fantasy price of an average of $35 for 2009 be put on the chopping block? Oil would have to be miraculously under $30 for the rest of the year for that to happen.
Now didn't we just hear about China's plan for oil the other day? Remember when China said they filled up their strategic oil reserve, on March 9, the day of the market bottom?
The response here:
Why would China tell the world it's state secrets?
So why are these Investment banks pimping oil now?
Maybe JPM thinks it's easier to spec in oil, than make loans!
Why else are these folks giving the TARP money back? The regulators want clarity in the shadowy areas of derivatives, where these big banks make most of their money.
So it's time to try and rig the commodity game again.
After all, didn't Goldman help with Semgroup's fall?
But maybe you want to listen to Goldman on oil.
I think you can do quite well ignoring them.
After all, did they tell you to short DTO at 231 on February 20?
And cover it at 77 and change yesterday?
Instead, they tell you to sell crude in the 30's, and now that it is $67, they tell you it's going to $75, from their target of $52.
So if oil goes up, on Goldman's pimp, sell it! Oil needs to rest at these levels.
Just like you had to buy it, when they pimped it down!
Because why would Goldman tell the world it's state secrets?
Are they really any different than the Chinese?