Investment bank Goldman Sachs warned on Monday that oil prices in the U.S. market will rise to 85 dollars per barrel before the end of this year, and due to insufficient supply, they could even reach 90 dollars.
This estimate is 13 dollars higher than the previous oil price forecast and follows the record level of 80.36 dollars per barrel reached on Friday. OPEC’s decision last week to increase its production by 500,000 barrels per day is not sufficient to curb expectations of rising prices, Goldman Sachs assesses. "We believe this is too little and too late, and that oil inventories will fall to critical levels this winter," the bank stated. Goldman expects prices to rise to as much as 95 dollars by the end of next year, while forecasting an average oil price of 85 dollars per barrel in 2008. (H)
