![]()
- Abu Dhabi Will Aid Debt-Fraught Dubai 'Case by Case'
- Banks With The Biggest Exposure to The UAE
- Dubai's Debt Woes Signal New Era for Creditors
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Dubai Stock Selloff May Bring Buying Opportunity
- Longer Lines, Fuller Carts This Black Friday
- Big US Banks May Be Forced to Raise Capital: Bove
- Bank of America Amends Pay for Senior Executives
- Tiger Woods Out of Hospital After Accident
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
Goldman Sachs, the most active investment bank in energy markets, on Friday sharply raised its forecast for oil prices in the second half of this year, citing tight supply.
The bank expects U.S. crude to average $141 a barrel in the second half of 2008, up from a previous projection of $107, it said.
![]() |
Goldman [GS
Loading...
()
] also forecasts prices will rise further next year to average $148.
"Tight supply conditions continue to be the primary catalyst for higher crude prices," the bank said in a research note.
"The near-term outlook for oil prices continues to be bullish." The Goldman forecast helped send crude prices to a record high of $127.82 on Friday, analysts said.
The 2009 estimate is the most bullish among more than 30 banks regularly polled by Reuters.
Goldman, one of the first to point to triple-digit oil more than two years ago -- a once unthinkable level -- earlier this month said oil could shoot up to $200 within the next two years.
Its note on Friday said that despite the advent of alternative sources such as biofuels, oil supply growth has slowed to 1 percent from about 1.8 percent in 2005 and less than the bank's forecast for 2008 world GDP growth of 3.8 percent.
"Given this imbalance, long-term oil prices will need to continue to rise," Goldman said.
Goldman's view that prices are rising in response to tight supply contrasts with others in the industry that oil's rally is being driven by factors beyond supply and demand fundamentals.
The Organization of the Petroleum Exporting Countries, source of two in every five barrels of oil, has rebuffed calls from the U.S. and other industrialised countries for more oil, saying supply is sufficient.
In OPEC's view, factors like the weakness of the U.S. dollar, speculative trading, a lack of capacity at oil refineries and political tension are lifting prices, not a lack of oil.
Royal Dutch Shell Plc, the world's second-largest fully publicly traded oil company by market value, has also said current prices contain an element of speculation.
Goldman is the latest bank to raise its price outlook this week.
UBS [
Loading...
()
] lifted its projection on Thursday and said inflation risks from rising oil costs would put a global economic recovery in 2009-2010 at risk.
In a note, the bank said oil economist Jan Stuart had lifted the UBS oil price forecast for U.S. crude to $115 a barrel from $86.96, a 32 percent rise.
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?













