Financial services giant Goldman Sachs is projecting that the price of oil will rise substantially within the next year, thanks to increased demand worldwide.
Goldman Sachs commodities analysts increased their year-end forecasts for Europe’s benchmark Brent crude by around $20 a barrel for 2011 and 2012, to $120 a barrel this year and $140 a barrel in 2012. – MarketWatch
News of this report, and a similar one from Morgan Stanley, sent oil futures up almost 2 percent on Tuesday.
“While near-term downside risk remains as the oil market negotiates the slowdown in the pace of world economic growth, we believe that the market will continue to tighten to critical levels by 2012, pushing oil prices substantially higher to restrain demand.
Read and/or download the Goldman Sachs report HERE.