Oil Markets. Reuters. This Goldman Sachs forecast seems to be in line with my earlier “window of vulnerability in the oil market” analysis. If anyone has access to the full report, please send it on. Welcome aboard! Goldman
Sachs said in a research report on Thursday that oil markets have
entered a “super-spike” period that could see prices rising as high as $105 a barrel.
“We believe oil markets may have entered the early stages of what we
have referred to as a “super spike” period — a multi-year trading band
of oil prices high enough to meaningfully reduce energy consumption and
recreate a spare capacity cushion only after which will lower energy
prices return,” Goldman's analysts wrote. Goldman's Global Investment
Research note also raised the bank's 2005 and 2006 NYMEX crude price
forecasts to $50 and $55 respectively, from $41 and $40. [John Robb's Weblog]
I'm told that $105 a barrel equates to around $4 a gallon for gas prices.