Goldman Sachs raises year-end oil price forecast to $85

[GliderGuider]

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-19619037.htm

LONDON, Sep. 17, 2007 (Thomson Financial delivered by Newstex) -- Goldman Sachs (NYSE:GS) has raised its oil price forecast amid near record high prices as the bank reckons demand is likely to exacerbate tight supplies looking ahead.

'We are raising our end-of-year (WTI) oil (three month) price forecast to 85 usd per barrel from 72 usd, with significant risks of a spike above 90 usd,' said analysts at the investment bank.

The only risk to its forecast, said analysts in a note this morning, is that wider financial market turbulence might batter demand to such levels that prices take a hit.

The bank laid blame on OPEC in particular for not reacting to supply tightness sooner, and said its decision last week to raise production by 500,000 bpd effective November 1 was too little too late.

For 2008, Goldman raised its average price forecast for the year to 85 usd from 73 previously.

Tight supply? OPEC not delivering? Sounds like Bleak Toil to me...

[Javaman]

1. boil that frog, hey! boil that frog, hey! boil that frog, hey! boil that frog, hey! nt