Goldman Sachs Cuts Oil: Draws Protest from Angry Unemployed Saudisposted by MR WAVETHEORY at 1/09/2007 01:51:00 PM
The changes took effect this month and apply for all of 2007, a Goldman spokesman said.
Crude oil futures plunged 9 percent Wednesday and Thursday to $55 a barrel, before settling Friday at $56.31. The two-day decline was the sharpest since December 2004.
The GSCI is influential because large institutional investors like pension funds and endowments invest according to its allocation model.
"If Goldman's model tells them to cut their energy exposure by half, they do it," says Warren Mosler, president and chief investment strategist of Valence Corp., a multi-billion dollar hedge fund.