longoil

Which Way for the Prices of Oil and Gold?

Deutsche Bank seems to be contradicting itself. In a recent article on the Motley Fool website dated Jun 27, 2008, their chief economist was quoted as saying oil prices will be stable at $120, not drop to $60 / barrel.

"Ahead of the Bell: Deutsche Bank boosts oil target

An economist with Deutsche Bank raised his crude price outlook Friday, prompting revisions to price targets on some of the world's largest oil companies.

Adam Sieminski, chief energy economist for Deutsche Bank, now expects crude prices around the $120 per barrel mark for the next two years, and prices to stabilize around $100 per barrel by 2010.

The new estimates are due to a delayed reaction of worldwide supply-and-demand elasticities to high prices, and the jump in exploration and development costs, the bank said."

As far as economists go, I would bet on CIBC chief economist and strategist, Jeff Rubin projection of $200 oil by 2010. His reports are always well researched and referenced and he has been consistently correctly in the past.