News & Reports News Year 2010 October , 2010 Oil Market Goldman Sachs predicts oil price hike

Oil Market Goldman Sachs predicts oil price hike

Goldman Sachs, the global investment firm, has predicted a rise of up to $100 a barrel in crude oil prices by the end of the next year.
In a note to clients, the largest commodities dealer in the US said that such a hike will happen as global stockpiles begin to fall.

The reasons attributed are the dollar's relative weakness and stronger-than-expected growth in demand for oil this year, the Financial Times reported.

Crude oil has been traded at between $70 and $80 per barrel for most of this year.

Analysts also envision that the economic recovery would be likely to trigger an increase in oil prices as consumption will begin to increase next year.

The firm had earlier predicted that oil prices would substantially rise in the second half of 2011 and 2012, as the global inventory surplus is to be exhausted.