Arab Today, arab today goldman sachs tips oil to hit 130 in 12 months
Last Updated : GMT 15:25:20
Arab Today, arab today
Arab Today, arab today

Goldman Sachs tips oil to hit $130 in 12 months

Arab Today, arab today

Arab Today, arab today Goldman Sachs tips oil to hit $130 in 12 months

Singapore - AFP

Oil prices will likely rise to about $130 a barrel in the next 12 months as demand in emerging markets such as China and India make up for weak developed world growth, Goldman Sachs said Thursday. Despite concerns about the US economy and eurozone sovereign debt, which have hit crude prices due to an expected fall in demand, the Wall Street giant forecast commodity prices to remain buoyant. At the same time it tipped gold -- a safe haven in times of economic uncertainty -- to cost $1,860 an ounce in a year, much lower than the record high of $1,921.15 it hit last month. The large emerging economies of the BRICS -- Brazil, Russia, India, China and South Africa -- are forecast to grow 7.7 percent this year and 7.9 percent in 2012. By contrast, advanced economies are projected to expand only 1.7 percent this year and 2.1 percent next year, Goldman Sachs said. Brent crude, which is traded in London, is expected to hit $130 a barrel in the next year, from current levels around $112, the bank said. West Texas Intermediate (WTI) light sweet crude oil, traded on the New York Mercantile Exchange, is forecast to reach $126.50 a barrel over the same period from current $88. Both contracts touched all-time highs of above $147 a barrel in July 2008 before the onset of a global financial crisis. \"Clearly, there is very little growth anticipated to come from the US, EU and the developed markets,\" said Allison Nathan, senior commodities economist at Goldman Sachs. \"But we expect quite robust emerging market demand growth with China still anticipated to grow at 9.2 percent next year and overall the BRICS countries close to eight percent,\" she told reporters in Singapore. Nathan said the spread between WTI crude and Brent should narrow in the future but it was still unclear when the gap will close. The high inventory level at the US oil hub in Cushing, Oklahoma, has led to WTI trading at a significant discount compared with other light sweet crudes such as Brent, Goldman Sachs said. It added that transportation pipelines must be upgraded to improve delivery. \"While we expect that alternative transportation capacity such as rail, truck and barge shipments will expand rapidly over the coming months, we believe that WTI will remain volatile and prone to dislocations in the future until the pipeline infrastructure is improved,\" it said. For gold, the US bank said an environment of low interest rates and central bank buying will support prices for the precious metal. Low interest rates drive investors to buy gold for higher returns, boosting prices. Prices for industrial metals such as aluminum, copper and nickel are also expected to rise, with Chinese demand a key driver. \"China is the single largest consumer of almost all commodities,\" said Julian Zhu, the China commodities analyst at Goldman Sachs. \"China is good at oversupplying so whichever commodity China is short of will likely have the strongest demand and pricing. Therefore, copper is our preferred metal,\" he said. Last year, China\'s share of the total global consumption for steel was 45 percent, 76 percent for iron ore, 41 percent for aluminum and 39 percent for copper, according to the US bank. \"China\'s per capita copper consumption is far below that of developed countries with high-end manufacturing industries. This suggests substantial upside for China\'s demand for copper,\" added Zhu. China consumed 5.4 kilograms of copper per person in 2010, compared with 7.2 kilograms in the OECD countries, he said.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today goldman sachs tips oil to hit 130 in 12 months Arab Today, arab today goldman sachs tips oil to hit 130 in 12 months

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today goldman sachs tips oil to hit 130 in 12 months Arab Today, arab today goldman sachs tips oil to hit 130 in 12 months

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq Kurds in historic independence vote

GMT 15:20 2017 Monday ,25 September

Iraq Kurds in historic independence vote
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday