Obama vs Goldman 'Oil' Sachs

Goldman Sachs had predicted earlier in the year the crude oil will touch $150 by July 4th when oil was ruling around the $100-$110 mark. Being that it is a very large player in the crude futures market and therefore, true to their word we got to see oil at around $142-147 by July 4th. The world reeled under the pressure of high inflation due to the tizzy hieghts that crude oil touched. This evoked very strong reactions accross the world including the political circles in the USA. Mr.Barack Obama, one of the US Presidential candidate, went to town proclaiming that he will, among other things impose a "windfall" profits tax on oil companies if he is voted into power. Crude oil prices have since come down to around $105-110 levels currently. However, Goldman Sachs is still very bullish on crude and has once again put a target of $150 on crude by year end. With the US election date fast approaching, we will soon have the political pundits coming out with a constant dose of opinion polls on the chances of both presidential candidates. Positive swings in favour of Obama could well signal a negative on crude oil prices and negate the Goldman effect.