Arjun Murti - The Man Behind the "Super Spike"
Arjun N. Murti has made a number of headlines over the past few years after making a couple of bold predictions regarding the price of oil.
He first made headlines back in 2004, when he predicted that the price of oil was in for a "super spike". Oil, trading at around $40 per barrel at the time, would spike to $105. Considering the fact that Murti is an analyst for the revered Goldman Sachs, this prediction carried even more weight, and angered many investors. Many investors also reacted with bewilderment at the prediction - how could the price of oil ever possibly top $100 per barrel?
As you all now know, oil did indeed reach $105 per barrel. As a matter of fact, it hit this level and kept right on going, and is now trading at over $130 per barrel. Murti, the subject of a great deal of scorn and ridicule, had been proven right.
Perhaps emboldened by his previous correct prediction, Murti made another one - oil would hit $200 per barrel. His words resonated with investors and traders, as his previously "insane" prediction had proven to be true. The price of oil, in a steady uptrend, shot up even further after Murti's new prediction. Speculators in the price of oil pounced, believing that the words of Goldman Sachs' analyst Arjun Murti would help propel oil even higher.
Are his predictions a self-fulfilling prophecy? If oil spikes and hits $200 per barrel, then surely his own words would have had a major impact on oil hitting this lofty level.
Unlike other analysts who seem to crave the spotlight, Murti prefers to remain in the shadows, out of view. According to a recent WSJ article, Murti is actually decidedly anti-oil, and believes that the "super spike" in prices will eventually lead to a significant decline in demand for oil.
Where will Murti's "Super Spike" call rank amongst the all-time greatest analyst calls ever? Time will tell. One thing is for sure though - when Murti speaks now, people will listen.
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