GS: China Price Hike = Greater Demand

S

scriabinop23

Got a laugh.. Additionally, last I checked their subsidy price is still under the spot price for oil. In other words, with variable cost being above marginal revenue, the refiners are still losing money per barrel, thus have no/little incentive to raise production. And this says nothing of refiners' fixed costs.

Contrary to the laws of economics:




China price hike unlikely to curb demand, Goldman says
By Steve Goldstein
Last update: 3:39 a.m. EDT June 20, 2008
Comments: 77
LONDON (MarketWatch) -- Goldman Sachs analysts say that the Chinese fuel price hike announced Thursday won't significantly slow demand growth and may, in fact, increase it. There will be a higher incentive for refineries to bring more products to the market, which in turn can alleviate domestic shortages of refined products. End of Story

http://www.marketwatch.com/news/sto...DF0E261-4944-43FC-AD2F-326690F9007E}#comments
 
GS predictions: 200 oil spike........not even close, and rates are going higher.

141 average.....we haven`t even hit 141 once, let alone average this price.


But its not about them being right, its about them getting as much juice as they possibly can from this last acorn of a place that they can make money.


Private equity deals=no
investment banking=no
housing=no
commercial real estate=no
stocks=no
bonds=no



commodity trading is their only source of revenue, it is what is keeping this firm`s bonuses even remotely intact right now, w/o commodity trading, GS would be much lower around 110 a share or less!
 
goldman is the leader of the pack to push oil price higher, they have a large stake in it. Of course they going to say that to prevent a major selloff until they could exit their positions.

common sense...
 
You must log in or register to reply here.
Back
Top