saudi's wonder why goldman sachs decides oil prices (solution, banks, world)

[harborlady]

UPSTREAM NEWS....
http://www.reuters.com/article/newsO...17800220080612
http://www.reuters.com/news/video?videoId=84361

"Leading exporter Saudi Arabia has summoned consumer nations and fellow producers to an urgently convened meeting to thrash out a solution to oil prices it says are unjustifiably high."

"...a massive flow of investment funds, which has helped to drive oil and other commodities higher, should be tamed."

"Banks such as Goldman and Morgan are prominent among those saying oil market fundamentals are a key factor in rising prices, sending a bullish message to the oil market... Goldman raised its oil price forecast in May, the very day that Saudi Arabia said it would raise supply. The Goldman forecast drowned out the Saudi signal to the market and pushed the price to what was then a record."

[KevK]

Originally Posted by harborlady

UPSTREAM NEWS....
Saudi summons the oil world over record price | U.S. | Reuters
OPEC boss slams speculators | Video | Reuters.com

"Leading exporter Saudi Arabia has summoned consumer nations and fellow producers to an urgently convened meeting to thrash out a solution to oil prices it says are unjustifiably high."

"...a massive flow of investment funds, which has helped to drive oil and other commodities higher, should be tamed."

"Banks such as Goldman and Morgan are prominent among those saying oil market fundamentals are a key factor in rising prices, sending a bullish message to the oil market... Goldman raised its oil price forecast in May, the very day that Saudi Arabia said it would raise supply. The Goldman forecast drowned out the Saudi signal to the market and pushed the price to what was then a record."

It is the Arabs that control the price. All they have to say is "we are doubling production effective tomorrow" and the prices will fall like a rock overnight! They do not even have to actually follow through and do it. Just saying it is enough.

[harborlady]

BBC NEWS | Business | Who knows why oil prices are so high?

"The problem is, much fundamental information is not freely available."

[chielgirl]

Kev, I think that the market is playing with oil "futures" and the prices are artificially high. It seems from a few articles that I read that this is a real problem.