Global News Journal

Oil’s run-up outpaces most price targets… more upside?

June 11, 2009

    The recent run-up in oil prices could have further to go as most analysts are likely to begin raising their year-end oil price targets, according to market research firm Birinyi Associates in Stamford, Connecticut.    “Given several considerably lower expectations, we think it is reasonable to expect upgrades,” they said in a research commentary, noting that crude oil prices were already above most firms’ year-end targets.    U.S. front-month crude hit an intraday high of $73.23 on Thursday, the highest intraday level since prices hit $75.69 on Oct. 21.    A year-end oil price target of note recently came from Goldman Sachs, which raised its end-of-2009 oil price forecast on June 4 to $85 a barrel from $65.    Oil’s climb partly reflects weakness of the U.S. dollar and expectations that demand may be picking up as the global recession abates.— Graphic courtesy of Birinyi Associates, Inc.

Trying to deconstruct Chinese oil policy

June 20, 2008

china-fuel.jpgChina’s surprise decision late on Thursday to slash subsidies on fuel prices has been welcomed as a sign that Beijing is intent on reducing the pace of oil demand growth in the world’s second biggest energy consumer.