Breaking News

Wednesday, May 25, 2011

Crude demand is down, yet Goldman Sachs, Morgan Chase predict $135 barrel oil for 2012

XIAMEN, CHINA - APRIL 07:  A petrol attendant ...Image by Getty Images via @daylife
If "Investment Companies" like Goldman
Sachs, Morgan Chase and others have
their way, gas prices will hit $5.40 by
the end of 2012

Regardless what your family members or neighbors can afford to pay for gasoline, if oil investors have their way, by the end of 2012 the average price for a gallon of gas will be $5.40 and $135.00 a barrel.

On Wednesday, May 26, Oil climbed above $101 per barrel investors cheered a sharp rise in refining activity in the U.S. 


Meanwhile the nation's gasoline supplies increased and pump prices continued to increase on Wednesday in many areas, including Michigan, who saw an average of a .40 jump for a gallon of gas in one day.

Gas in the Southeastern Michigan region on Tuesday, May 25th, could be found as low as $3.59 a gallon. For drivers that didn’t take the time to fill up went prices were on the downswing, on Wednesday morning, motorist found the same gas for $3.99 a gallon.

Oils rose on “Wall Street” came about after the government reported that refinery utilization grew to 86.3 percent last week, up from 83.2 percent the week before. The increased activity came mainly in the Midwest, where benchmark crude is delivered.
"A lot of people are looking at that and thinking it'll absorb some excess crude supply down the road," said Michael Lynch, president of Strategic Energy & Economic Research to AP.
Goldman Sachs, whom with other large “investment” companies, controls with a statement the price of oil, stated on Monday, they expect the benchmark West Texas Intermediate crude to hit $135 per barrel by the end of 2012. Morgan Stanley said Brent will average $120 per barrel this year, while J.P. Morgan thinks Brent will be $130 per barrel in the third quarter.
"They're very cautious about selling after the big boys come out and start pumping up" the price," oil analyst Jim Ritterbusch said to AP.
Another “investment company” Barclays Capital has boldly predicted on Tuesday, that crude demand could pick up this summer as power shortages in China worsen. An extended drought is reducing hydroelectric sources and forcing authorities to turn to coal and diesel to run generators.

Benchmark crude for July delivery added $1.73 to settle at $101.32 per barrel on the New York Mercantile Exchange. In London, Brent crude rose $2.40 to settle at $114.93 per barrel on the ICE Futures exchange.

Ironically, gas supplies are at an all-time high while “investment companies” took new excuses to make more dollars by pricing many America’s out of the gas market. The U.S. Energy Department reported that oil and gasoline supplies in the U.S. grew last week, as demand for petroleum products fell.
"The trend has become clearer as pump prices increased" that consumers have been changing their driving habits, said Andrew Lipow, president of Lipow Oil Associates in Houston.
The Energy Information Administration said crude supplies increased unexpectedly by 600,000 barrels and gasoline supplies rose by 3.8 million barrels. The four-week average oil demand in the U.S. dropped 5.3 percent, while gasoline demand fell 2.1 percent. Demand for diesel fuel and jet fuel also declined.
Never miss any of the stories on ROJS by adding our RSS Feed Below!


Subscribe
Tell us your thoughts about this article!

Enhanced by Zemanta

No comments :

Listen | Independent Underground Radio | On-Demand

IUNT's | Featured Post

Two Flint Emergency Managers Charged In Toxic Water Crisis Under Snyder's Authority

Photo Credit - Independent Underground News & Talk Michigan Governor Rick Snyder and his Flint Appointed Emergency Managers from (L...

Think Progress | Progressive Politics News

Michigan Politics & Elections | News

AlterNet | Economic News

Copyrighted by ROJS Media, LLC 2016