This morning, Goldman Sachs reported their forecast for crude prices.
That is, we’re talking about the light sweet West Texas Intermediate crude. The U.S. investment bank is expecting crude prices to average $90 per barrel next year, before rising to an average of $110 per barrel in 2011.
What’s the driving factor for the boost in oil prices? According to Goldman analyst Jeff Currie, "We expect increasingly strong demand from the emerging markets to once again require higher prices to ration demand out of the developed markets in 2011."
Although Goldman’s 2010 forecast remains unchanged, the U.S. investment bank is expecting lower prices in the beginning of the year.
Meanwhile, crude prices are still trying to make another run past $80 per barrel lately. During trading on Tuesday, prices rose to $79.04 per barrel before settling at $78.37 per barrel.
With triple-digit oil prices on the horizon, it’s amazing how quickly investors forget the past.
What makes me think that way?
For starters, a rush of investors are once again focusing their attention on the oil majors. Unfortunately, those investors have completely forgotten how hard it’s gotten out there for the big players. I addressed my concern over these top oil stocks. And quite frankly, my outlook hasn’t changed in the slightest. The fact is that the future of these major oil companies like ExxonMobil is being directly threatened by a much greater problem. I’ll reveal this oil-dominating force on Monday.
See you then,– Keith Kohl