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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (71333)	8/22/2000 8:52:06 AM
From: Tomas	Read Replies (2) \| Respond to of 95453

Oil Could Top $50 a Barrel Within a Year - Bridge News, August 18 The risk of an oil shock to the U.S. economy is "unusually high," and a 10% probability exists that crude prices could exceed $50 a barrel within the next year, Goldman Sachs Group Inc. warned Friday. William Dudley, director of the investment bank's U.S. economic research, said "oil prices are increasing again and could rise much further." If crude prices exceed $50 a barrel, "the risk of a hard landing (for the economy) would increase," he added in his department's weekly U.S. Economics Analyst publication. Explaining the recent spike in the commodity's price - and reasons it could be extended - Dudley identified faster global growth as spurring demand, unusually lean oil inventories and less capacity for production among members of the Organization of Petroleum Exporting Countries. "With the seasonal demand for petroleum likely to climb sharply over the next six months, the risks of an oil price shock will be unusually high through the winter months," he added. He said a sharp rise in crude prices also would "complicate the conduct of monetary policy" by dampening economic growth but forcing up inflation. However, he said monetary policy-makers would probably accommodate any oil price shock unless evidence emerged that it was driving up inflationary expectations. “So far, the rise in oil prices has not led to a significant rise in such expectations," he said. On Thursday, Goldman Sachs denied issuing a report last week warning that crude prices could hit $40.00 per barrel this winter - talk that had sent jitters through financial markets Wednesday. petroleumstocks.com