Crude Oil Falls a Second Day After Goldman Recommends Selling - Aussie Stock Forums

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  1. #1

    Join Date
    Jan 2007

    Default Crude Oil Falls a Second Day After Goldman Recommends Selling

    Crude oil fell for a second day, extending its decline from Monday's record, after Goldman Sachs Group Inc., the bank that said in July oil may reach $95 a barrel, told clients it's ``time to take profits.''

    Goldman said in a report it was closing its long position in New York oil futures. Long positions are bets that prices will rise. A U.S. Department of Energy report today may say crude stockpiles gained, according to a Bloomberg News survey.

    ``We're very nervous across the board. Given the fundamentals at the moment oil is still far too high,'' said Jonathan Barratt, managing director of Commodity Broking services in Sydney. ``We've got the important data out later and the market is going to be focused on that.''

    Crude oil for December fell as much as 82 cents, or 0.9 percent, to $89.56 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $90 at 8:20 a.m. Singapore time.

    Yesterday, the contract dropped $3.15, or 3.4 percent, to settle at $90.38, the biggest one-day drop since Aug. 6. Futures are down 4.1 percent from a record $93.80 reached on Oct. 29.

    Oil has gained 47 percent this year as hedge funds and other large speculators increased bets on rising prices. Net- long positions in New York crude futures in the week ended Aug. 3 jumped to the highest in more than a decade.

    `Downside Risks'

    ``The downside risks we have embedded in our end-of-first- quarter 2008 oil price target of $80 a barrel are beginning to gain momentum,'' Goldman said. ``These include increasing exports, a slowing U.S. economy, an adequate level of heating oil inventories.''

    A U.S. Energy Department report today is expected to say that crude-oil stockpiles rose 400,000 barrels last week, according to the median of 16 responses in the survey. The report may show that stockpiles of distillate fuel, a category that includes heating oil and diesel, dropped 1 million barrels,
    the survey forecasts.

    ``Stockpiles are still 5 to 7 percent above five-year averages,'' Commodity Broking's Barratt said. Oil may fall to $75 by the end of the year, he said.

    Oil price and MCAD is showing divergence, indicating that price will be falling soon.

  2. #2
    E/W Learner Kauri's Avatar
    Join Date
    Sep 2005

    Default Re: Crude Oil Falls a Second Day After Goldman Recommends Selling

    Good to see all the experts agree..

    RBA McKibbin - Oil Price Likely To Top $100/Brl October 31. The RBA official adds that the global economy will be able to ride out high crude oil prices and any US downturn.
    The above post is personal opinion only, for investment advice consult a licensed professional who fully understands the value of trailing commissions.

  3. #3

    Join Date
    Jan 2007

    Default Re: Crude Oil Falls a Second Day After Goldman Recommends Selling

    Did they? One is bullish, one is bearish..

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