{"id":21591,"date":"2013-01-17T19:35:42","date_gmt":"2013-01-17T18:35:42","guid":{"rendered":"http:\/\/feedproxy.google.com\/~r\/zerohedge\/feed\/~3\/G5ciJHScBpI\/story01.htm"},"modified":"2013-01-17T19:35:42","modified_gmt":"2013-01-17T18:35:42","slug":"2007-deja-vu-as-goldman-sees-150-oil-by-the-summer","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/breaking-news\/2007-deja-vu-as-goldman-sees-150-oil-by-the-summer\/","title":{"rendered":"2007 Deja Vu As Goldman Sees $150 Oil By The Summer"},"content":{"rendered":"
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While Brent closed 2012 at around its average closing price for the year, suggesting some stability, rolling a front-month contract garnered returns over 10% underscoring Jeff Currie’s (Goldman’s chief commodity strategist) note that money can still be made in a low volatility environment. However, he does note the incredible divergence between near-record-high geopolitical risks and near record-low Brent crude volatility relative to stocks<\/strong>. The key is that while Currie expects the global oil to remain cyclically tight (inventories low in 2013-14), with a $105.50 average for WTI; in an interview earlier today in Frankfurt, he said he wouldn’t be surprised “if we woke up in summer and [Brent] oil cost $150” per barrel.<\/strong><\/p>\n

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Dow Jones notes<\/a> that:<\/p>\n

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Mr. Currie pointed out that despite the boom in U.S. shale gas, the oil price remains high, which he attributed primarily to sanction-related supply disruptions in Iran. Trying to compensate for this, Saudi Arabia has already increased its oil production to a 30-year high this year. At the same time, Mr. Currie added that while global oil demand has increased at a slower pace, it is still higher than the production increases in non-OPEC countries.<\/strong><\/p>\n<\/blockquote>\n