Texas Tea Could Spoil Wall Street’s Party
Monday, July 23, 2007 - 12:30 am
Are you ready for another week of earnings reports? The fabulous weather this past weekend on the east coast is already a distant memory. Put the beach photos away, because there will soon be plenty of numbers to digest. And perhaps a looming nightmare to contend with.
Creeping oil prices
Oil prices could triple in three months to more than $200 a barrel, given the right circumstances, according to Matthew Simmons, chairman of Simmons & Co., a Houston investment bank. Bloomberg
Texans like to trash talk. Especially when they are talking their book:
A pullout from Iraq may be the event that pushes oil to $100 a barrel, according to Boone Pickens, the Dallas hedge fund manager who has joined Forbes Magazine's list of billionaires because of his bullish bets on energy prices.
However, bold predictions are not only the province of wealthy ex-wildcatters.
A little over a year ago Goldman Sachs sensationally predicted we would see $100-a-barrel on a “super-spike”, by 2009. Oil prices promptly retreated, but have clawed their way back. A modest overweighting in energy might lessen the pain for vanilla managers. But as old-timers are fond of saying, you can’t eat relative performance. This is one tea party that would leave a bad taste in most everybody’s mouth.
$100 Oil Maybe be Months Away, Not Years, Say CIBC, Goldman
Bloomberg
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