Thank You, Goldman Sachs
By Gunnar Heinrich
RECALLING the 1989 flick Field of Dreams, Kevin Costner’s character is told by a mysterious voice that “If you build it, they will come.”
Well, the market got a taste of that today when a Delphic voice from investment bank Goldman Sachs seemed to tell investors: if you forecast high prices, they will come.
On Goldman’s words that the future price of a barrel of oil could rise to $200 a barrel (economists like round numbers don’t they?) the market took it as a green light to make it happen.
According to the AP, June deliveries for Light Sweet Crude jumped two bucks to $122 a barrel on Goldman’s announcement.
This news comes just as gas prices had actually ebbed a little this past week from all time highs in North America. What…propitious timing.
Of course the falling dollar doesn’t help pump prices, either.
[Linked: Brietbart.com | MSNBC]
About the Author: Gunnar Heinrich is publisher of Automobiles De Luxe online and is executive producer of the Automobiles De Luxe Television series on PBS member station CPTV.
steane | May 6, 2008 | Reply
I think we will see $200 a barrel – sooner rather than later. Running a car is going to be a luxury in the coming years.
There are plenty of alternatives in the wings. One I particularly like is bio-diesel developed from algae. A never ending source of fuel that doesnt require fossil fuels or cropping on a large scale. This is being developed right now, and they can make bio-diesel of a suitable quality for todays modern diesel.
I guarantee though that when these new fuels become mainstream, their price won’t drop…
Gunnar | May 7, 2008 | Reply
Such dark thoughts, Steane!
Jim | May 7, 2008 | Reply
Not to mention cold fusion
gunnar | May 7, 2008 | Reply
Or Tata’s air power.
steane | May 8, 2008 | Reply
We could just go back to walking. Gunnar could write about footwear rather than cars.
Gunnar | May 8, 2008 | Reply
Ah the greatness of the writer – we can talk about anything!