Back when Goldman oil bull Arjun Murti said oil was going to $150, a slew of bloviators called him reckless, irresponsible, and, gasp, wrong. Oil hit $147 in mid-July and while that may not quite be $150, it's close enough.
So now that oil is hovering around $115/barrel amid fears of global economic collapse, is the bank ready to trim its forecast? Nope.
Goldman isn't worried about a strengthening greenback either: they're focused on fundamentals. They expect declining trend oil supply growth and emerging market demand to continue to drive rising oil prices. Period:
Although the recent correlation in dollar and oil prices is clear, it is important to emphasise that each of these assets are driven by multiple, varying factors ... Put differently, there is more to oil than the U.S. dollar and vice versa.
[There is] very little correlation between oil prices and the U.S. dollar over the longer term.
Goldman reiterates their year end oil price forecast of $149
See Also:
Goldman Oil Bull Speaks: Yes, Oil Still Going to $150-$200 A Barrel, Gas to $4-$6
Goldman Oil Bull: I'm Not A Crackpot
Goldman Oil Bull a Nutcase: Here's Why Crash Coming Soon
