Goldman sees massive upside risk in oil prices

[Ghost Dog]

LONDON | Mon Jan 9, 2012 1:13pm EST (Reuters) - Oil, gold and base metals are Goldman Sachs' top commodity picks this year, with big upside risk in oil due to tight fundamentals and a potential Iranian conflict, the investment bank said on Monday.

/... http://www.reuters.com/article/2012/01/09/us-iran-china-goldman-idUSTRE8081EB20120109

What's of interest are the three comments:

alanchristopher wrote:
The analysis on oil prices is correct because China continues internal development with its 12th and 13th Five Year Plans (2011-2020) for the central and western provinces, so China builds massive infrastructure projects giving millions of workers jobs with paychecks to become customers and taxpayers. Supporting companies will expand with more workers who will become customers and taxpayers. The world’s biggest car market will need more oil whatever the US and EU do to themselves. The same goes for other developing economies that depend less and less on the West for their growth. The wild card is the West’s new insanity about old lies over non-existent WMD’s in Iran. Iran has the missiles to destroy the oil and gas infrastructure of Kuwait, Saudi Arabia, Qatar, the UAE, and Oman, and the West can retaliate to destroy the Iranian oil industry. Fortunately, oil is fungible, so prices will rise enormously (between $200 and $300 per barrel and gasoline at $15 per gallon in the US and $22 per gallon in the EU), driving the US and EU into a ten year depression that will keep the West impotent, so China can dominate the world for the rest of this century and beyond. China keeps its focus on business instead of crazy, racist schemes to tell developing countries how to behave. The slave owners, Jim Crow enforcers, and genocidal mass murderers of native Americans combine with the colonial masters, Nazis, and Fascists to teach morality to their former victims. The West needs a ten year depression to grow up.
Jan 09, 2012 1:08pm EST

USAPragmatist wrote:
Of course Oil prices are going to go up, when we have either reached the oil peak or are about to prices have no where to go but up. All the more reason to start an oil company(or fossil fuel) tax and extra gas tax to fund research into alternative energy/transportation fuels, e.g. a hydrogen based fuel economy, with future fusion (or other clean and renewable) technologies powering it. This is not going to happen overnight, but better to start sooner then later.
Jan 09, 2012 3:09pm EST

DetroitNative wrote:
If the speculators and hedge fund managers have their way we’ll all be paying $5 a gallon before anything happens to justify it. The funds will cash out, and the price will drop. The gold rush is over, and now its oil’s turn at bat. Want to crash the economy? Kick the consumer when they’re down, and run for the hills. Want to see riots in the streets? Continue to allow folks like Goldman Sachs to set the price of oil through manipulation, reap profits, and kill the consumer class. When the time comes, heads will roll, and there will be blood.
Jan 09, 2012 3:40pm EST