Goldman Sachs is predicting oil at $90/barrel THIS YEAR!
This comes at a time of contradictions in our government:
- Encouraging OPEC to pump more oil “to support the world economy” but discouraging US drilling (Permits on Federal land down 75%)
- Canceling the Keystone Canada-US pipeline while supporting the Russian pipeline to Germany
- Not sure if this one is US or State government, but canceling the pipeline from Pennsylvania to New Jersey will result in more oil being burned in the North East
All while Europe and Asia are burning more coal to keep the lights on – and, with coal in short supply, they are also grabbing more oil.
At the same time, the major oil companies are backing down investment in all aspects of the business. While oil is currently in the mid-$70 range, Goldman Sachs may well be right, and we’ll see much more expensive diesel at the pump.