Goldmans Sets Crude Oil Target at $75
Financial Market Comments from Anthony Grech, Research Analyst, IG Index.
Energy shares rose on Thursday after Goldman Sachs lifted its price target on light sweet crude oil from $52 to $75 a barrel. Chevron Corp was up by almost 1% to $68.86 and Exxon Mobil climbed 0.4% to $72.39.
‘The recent rally in WTI prices is likely to be but the first stage in the oil price rally that we expect will accompany a recovery in economic activity. In all, we expect the rally we have just observed to be followed by three more stages, creating a four-stage rally in oil prices in 2009 and 2010,’ the broker said. [1]
Not surprisingly, July light sweet crude oil was up by 3% to $68.11 a barrel, while July Brent crude oil traded 3.2% higher to $68 a barrel following the report.
[1] Source: Market Watch (4 June 2009)
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DB
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