Oil Price May Reach $150 a Barrel This Summer
KUALA LUMPUR, Malaysia --- The global head of commodities research at Goldman Sachs predicted on Monday that oil prices will likely reach $150 a barrel this summer, with tighter supplies outweighing weakening demand, Reuters reported.
"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 the Malaysian capital, referring to oil at $150 a barrel.
Last month, investment bank Goldman Sachs said oil could shoot up to $200 within the next two years as part of a "super spike."
Forecasts that the price of oil could head toward $150 and above have multiplied over the past month as prices have shattered record after record. On Friday, oil climbed more than $11 a barrel for its biggest one-day gain ever.
Oil hit an all-time high of $139.12 on Friday, largely because of a weak U.S. dollar and mounting tensions between Israel and Iran.
According to Reuters, 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.
"Demand for oil is weak but supplies are even weaker," Jeffrey Currie told the conference, citing supply disruptions in Nigeria and struggling output in Russia.
Reuters also reported that investment bank Morgan Stanley advised on Friday that crude may reach $150 by July 4. Morgan Stanley attributed that primarily to strong Asian demand and falling inventories.