Oilphant,
You're putting your trust in what Merrill Lynch says?? LOL..
Oh boy..no wonder your predictions never come true. You listen to and put your trust in the wrong people.
Remember when oil was at $140.....remember what Goldman Sachs said? In case you don't remember, the article is below. They predicited $200 dollar oil. The "experts" at Goldman were wrong.........
By the way you post, you make youraself out to be some kind of all-knowing economic oracle....hate to break it to you....you're not.....not even close.
Do you even understand economics Oily? Have you studied it? If so, are you from the Austrian school or are you Keynesian? My bet is neither. Why do i think that? Becauase to back up your predictions you paste articles by Merill Lynch....the "experts".
Did Merill Lynch or Goldman Sachs see the economic crisis coming in 2002...or 2003...or 2004? No...they did not. So why listen to them now?
You know who did see it coming? Individuals from the Austrian School....Gary North...Bill Bonner..etc..etc. They've read and understand Ludqwig von Mises and Murray Rothbard.
I got laid off in 2007.Know what I do now...nothing. I consider myself to be retired. Am I a genius. Nope. But what I do understand is economics. I got into Gold in the low 400's...oil in the 40's(on its way up)...sold my house in late 2006..before housing collapsed. Do i have a crystal ball? Nope...i study economics....the Austrian school.
Here's tip for you Oily....read up on quantitative easing. Because that's the Federal Reserve's plan to fight deflation. They are going to fight deflation by injecting a ridiculous amount of money to the system......there is no set dollar amount.....the Fed will inject whatever it takes.
The next thing we will see is Inflation. Do you know what inflation is Oily? It's not an increase in prices.....that's a symptom of inflation. Inflation is an increase in the money supply. The Fed has added trillions....they will add much more. Inflation will follow....it cannot be stopped. Trying to stop it would be akin to trying to stop the sun from rising in the morning.
It may take several months.....but i guarentee....this country will see inflation like it hasnt seen since WWII.
Stick to making predictions about ERHC Oily.....and leave the economic predictions to the people who know what they are talking about.
Goldman Sachs: oil will super-spike to $200 per barrel
Wednesday, 7 May 2008
Three years after the investment bank invited ridicule by postulating a " super-spike" that would send oil over $100 a barrel for the first time, the Goldman Sachs analyst Arjun Murti warned that high prices would last even longer and go even higher than previously thought.
In London trading yesterday, Brent crude moved above $120 for the first time, while light sweet crude traded in New York set another intra-day record over $122, before settling at $121.84.
Mr Murti predicted that, although Western countries were beginning to discuss the need to reduce energy consumption, there was still no sign of the excess production capacity needed to cool the market. "The possibility of $150-$200 per barrel seems increasingly likely over the next six-24 months," Mr Murti told clients, "though predicting the ultimate peak in oil prices, as well as the remaining duration of the upcycle, remains a major uncertainty... a multi-year decline in global oil demand is needed in order to recreate a spare capacity cushion and bring about potentially lower energy commodity prices."
Goldman says that the factors leading the oil price higher remain firmly in place, particularly a lack of supply growth. Countries in the Opec producers' cartel are close to capacity, the growth in Russian production is slowing, and in Mexico it is falling. Meanwhile, demand from emerging markets continues to soar.
Mr Murti added: "We believe there is a fundamental misperception among many in the oil industry, Wall Street, the media, politicians and the general public that so-called 'speculators' are driving up the oil price to supposedly unjustified levels.
"Unfortunately, we do not think the energy crisis will be solved by finding and punishing the big, bad speculator.
"In fact, commodity investors are helping to solve the energy crisis by speeding up the process of incentivising higher capital spending on a wide range of energy projects, while at the same time encouraging lower levels of demand by energy users."
