Compelling Investment Opportunity in Crude Oil - Goldman
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Analysts at Goldman Sachs are blamed the crisis in the EU for the collapse in oil prices. The price of WTI futures have fallen from a high of $110 per barrel to a current price of $85.12 per barrel. The price of United States Oil (NYSE: USO), an ETF that tracks the futures price of crude oil, is lower by 20 percent in the past three months.
A reversal in the price of crude oil could be "rapid" if countries move to halt concerns over economic growth, said David Greely, head of energy research at Goldman Sachs.
"The recent oil price action highlights the increasingly large role that policy risk is playing in the world oil market," Greely said. "As the uncertainty surrounding the policy response to the latest phase of the EU debt crisis and the softening economic data in the United States and China is lifted, we believe that a long WTI position will offer a compelling opportunity."
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A reversal in the price of crude oil could be "rapid" if countries move to halt concerns over economic growth, said David Greely, head of energy research at Goldman Sachs.
"The recent oil price action highlights the increasingly large role that policy risk is playing in the world oil market," Greely said. "As the uncertainty surrounding the policy response to the latest phase of the EU debt crisis and the softening economic data in the United States and China is lifted, we believe that a long WTI position will offer a compelling opportunity."
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