April 19, 2010

Goldman Sachs` (GS) Impact On Oil Prices

Dan Dicker, a well known New York Merc floor trader believes that oil traders and speculators will run for the exits in the belief that Goldman Sachs Group, Inc. (Public, NYSE:GS) shrinking presence in the oil market will mean lower prices for the commodity:

Goldman Sachs Group, Inc. (Public, NYSE:GS) fraud charges are sure to affect oil prices too -- and I think crude will be a terrific short for the medium term. Of all the things surely affecting oil prices, it has been my theory that the financial player's perceptions of the market are the most important and telling.

And I've seen the pattern enough in the past before to know: If you can lever some of this speculative money out of the market, by hook or by crook, prices go down -- and sometimes they go down a lot.

Related Etf`s: United States Oil Fund LP (ETF) (Public, NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL)

Related Stocks: Goldman Sachs Group, Inc. (Public, NYSE:GS) and Morgan Stanley (Public, NYSE:MS)

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