It wasn't long ago when we reported to you that Goldman had been kicked out of at least one exclusive oil club. Now we hear the rumor that they are getting out of the oil price guessing game (at least the public version) all-together. Says FT Alphaville:
Goldman's latest commodities note is out, and this is all you need to know:
Closing our oil trading recommendations
Although we have emphasized in the past few weeks that continued weak oil demand exacerbated by constrained credit conditions will contribute to soften near-term fundamentals keeping WTI prices, timespreads and gasoline cracks under pressure, we have left our oil trading recommendations open, expecting that high volatility would provide a better exit point to our trades. The volatility in the past few weeks has mostly been to the downside and the pressure on the oil complex has increased. In the near term, we do not expect significant upside potential and as a consequence we are closing all of our oil trading recommendations.
Odd, we can't find the "note" in question. Anyone else out there see the smoking research report?
It's official, Goldman capitulates on oil [FT Alphaville]