Skip navigation
Oil Video Gallery
Discussing markets, currencies and oil, with Peter Yastrow, DT Trading; Michael Woolfolk, Bank of New York Mellon; Peter...
"Commodity markets may be on the brink of another fast trend down and if that's the case they're going to take stocks wi...
The proposed merger Nippon Oil and Nippon Mining is not a watershed deal, believes Kenneth Siegel, managing partner at M...
Pessimism is definitely ruling the market at this point, notes Tim Hornibrook, division director at Macquarie Global Inv...
Stock markets in the Gulf region have plunged recently on the back of the global financial crisis and falling oil prices...

Current DateTime: 05:44:39 05 Dec 2008
LinksList Documentid: 24890560
  • Predictions '09

      Find out what trends, events, people and forces are likely to shape the world of business in 2009.

  • Holiday Central

      Your one stop destination for all the latest retail news, blog reports, shopping tips and holiday slideshows.

  • Wall Street In Crisis

      With shock after shock to the world's financial system, the credit crunch continues to drive a major reconfiguration of the Wall Street landscape.

Oil Is Likely to Hit $150 This Summer
Reuters | 09 Jun 2008 | 11:49 AM ET
Text Size

Oil prices are likely to hit $150 a barrel this summer season, the global head of commodities research at Goldman Sachs said on Monday, as tighter supplies outweigh weakening demand.

"I would suggest that the likelihood of that happening sooner has increased tremendously ... sometime in summer," Jeffrey Currie told an oil and gas conference in Kuala Lumpur, the Malaysian capital, referring to oil at $150 a barrel.

Goldman Sachs [GS  Loading...      ()], the most active investment bank in energy markets and one of the first to point to triple-digit oil more than two years ago -- a once unthinkable level -- said last month oil could shoot up to $200 within the next two years as part of a "super spike."

Forecasts that oil could head towards $150 and above have multiplied over the past month as prices broke through several records, the latest being last Friday, when oil soared more than $11 a barrel on Friday, its biggest one-day gain ever.

(Video: When will the Oil Bubble Burst?).

Oil hit an all-time high of $139.12 on Friday on the back of a weak U.S. dollar and mounting tensions between Israel and Iran.

Goldman Sachs forecast almost a month ago that U.S. crude would average $141 a barrel in the second half of 2008, up from a previous projection of $107, due to tight supplies.

"Demand for oil is weak but supplies are even weaker," Jeffrey Currie told the conference, citing supply disruptions in Nigeria and struggling output rise in Russia.

Investment bank Morgan Stanley [MS  Loading...      ()] , another big Wall Street energy player, said on Friday that crude may reach $150 by July 4 due to robust Asian demand and falling inventories.

Copyright 2008 Reuters. Click for restrictions.

HOME  |  NEWS  |  MARKETS  |  EARNINGS  |  INVESTING  |  VIDEO  |  CNBC TV  |  CNBC PLUS  |  CNBC MOBILE  |  CNBC HD+
About CNBC   |   Site Map   |   Privacy Policy   |   Terms of Service   |   Advertise   |   Help   |   Feedback   |   Video Reprints
  Data is a real-time snapshot   *Data is delayed at least 15 minutes

Global Business and Financial News, Stock Quotes, and Market Data and Analysis